- Advertisement -spot_img
28.2 C
HomeTop NewsCBN places limit on cash withdrawal from ATM, PoS, over the counter...

CBN places limit on cash withdrawal from ATM, PoS, over the counter to N100,000, N500,000 per week

- Advertisement -spot_img

By Samuel Bankole

The Central Bank of Nigeria (CBN) on Tuesday announced a restriction on the amount of cash customers can withdraw over the counter from their accounts to N100,000 for individuals and N500,000 for corporate entities per week.

The new currency policy was announced in a circular to commercial lenders and signed by the regulatory bank’s Director of Banking Supervision, Haruna .B. Mustafa.

The limit on cash withdrawal will also affect both cash from over the counter at the banking hall, Point of Sale (PoS) Machines, and Automated Teller Machines (ATM).

The circular also directed banks to only load only N200 and lower denominations into their ATM.

However, for individuals and corporate organisations that want to withdraw more than the limited prescribed, they should be ready to pay a processing fee of 5 and 10 percent respectively on the cash withdrawal above the limit of N100,000 and N500,000.

The details of the circular to banks

“Further to the lunch of the redesigned Naira notes by the President of the Federal Republic of Nigeria on Wednesday, November 23, 2022, and in line with the cashless policy of the CBN, all deposit money banks and other financial institutions are hereby directed to note and comply with the following:

“1. The maximum cash withdrawal over the counter by individuals and corporate organisations per week shall henceforth be N100,000 and N500,000 respectively. Withdrawals above these limits shall attract processing fees of 5 percent and 10 percent, respectively.

“2. Third-party cheques above N50,000 shall not be eligible for payment over the counter, while extant limits of N10,000,000 on clearing cheques still subsist.

“3. The maximum cash withdrawal per week via Automated Teller Machine shall be N100,000 subject to a maximum of N20,000 cash withdrawal per day.

“4. Only denominations of N200 and below shall be loaded into the ATMs.

READ ALSO: Labour Party Crisis: Who is Abayomi Arabambi Working For? 

“5. The maximum cash withdrawal via the Point-of-Sale terminal shall be N20,000 daily.

“6. In compelling circumstances, not exceeding once a month, where cash withdrawals above the prescribed limits are required for legitimate purposes, such cash withdrawals shall not exceed N5,000,000.00 and N10,000,000.00 for individuals and corporate organisations, respectively, and shall be subject to the referenced processing fees in (1) above, in addition to enhanced due diligence and further information requirements.

“Further to (6) above, you are required to obtain the following information at the minimum and upload same on the CBN portal created for the purpose:

“a. Valid means of identification of the payee (National Identity Card, International Passport, Drivers License.). b. Bank Verification Number of the payee. c. Notarised customer declaration of the purpose of the cash withdrawal. d. Senior management approval for the withdrawal by the Managing Director of the drawee, where applicable. e. Approval in writing by the MD/CEO of the bank authorising the withdrawal.

“Please further note the following: i. Monthly returns on cash withdrawal transactions above the specified limits should be rendered to the Banking Supervision Department. ii. Compliance with extant AMUCFT regulations relating to the KYC, ongoing customer due diligence and suspicious transaction reporting etc., is required in all circumstances. iii. Customers should be encouraged to use alternative channels (internet banking, mobile banking apps, USSD, cards/POS. eNaira, etc.) to conduct their banking transactions.”

Two months ago, Global Financial Digest reported that the CBN announced its plans to redesign and issue new naira notes of N200, N500 and N1,000 beginning on December 15 and phased out the old notes by January 31, 2023.

On November 23, President Buhari unveiled the redesigned new naira notes shortly before the commencement of the weekly Federal Executive Council (FEC) meeting in Abuja.

Speaking at the launch of the new banknotes, which preceded the Federal Executive Council (FEC) meeting, the President explained in detail the basis for his approval to the Central Bank of Nigeria (CBN) to redesign the N200, N500 and N1000 banknotes.

According to the President, ‘‘the new Naira banknotes have been fortified with security features that make them difficult to counterfeit.’’

He also added that the new banknotes would help the Central Bank design and implement better monetary policy objectives as well as enrich the collective memory of Nigeria’s heritage.

Join Our Mailing List!

* indicates required
- Advertisement -spot_img
- Advertisement -spot_img
Must Read
Related News
- Advertisement -spot_img