In a circular sent to all Financial Institutions and Deposit Money Banks under the supervision of the Apex bank, today 6th December 2022, the Central Bank of Nigeria CBN has revised the cash withdrawal limit to N100,000 for individuals and N500,000 for companies across all banking channels including via ATMs and over the counter in banks with effect from January 9th, 2023.
The circular titled NAIRA REDESIGN POLICY – REVISED CASH WITHDRAWAL LIMITS signed by CBN Director of Banking Supervision, Haruna B. Mustafa also specified a penalty of 5 percent and 10 percent for individuals and companies that violated the policy respectively.
“Further to the launch 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 (DMBs) and other financial institutions (OFls) are hereby directed to note and comply with the following:
“The maximum cash withdrawal over the counter (OTC) by individuals and corporate organizations per week shall henceforth be N100,000 and N500,OOO respectively. Withdrawals above these limits shall attract processing fees of 5% and 10%, respectively.
ATM to dispense only N200 and below, PoS limit now N20k per day
The maximum cash withdrawal per week via Automated Teller Machine (ATM) shall be NI 00,000 subject to a maximum of N20,000 cash withdrawal per day.
Only denominations of N200 and below shall be loaded into the ATMs
The maximum cash withdrawal via point of sale (POS) terminal shall be N20,000 daily.
Third party cheques now max of N50,000
Third party cheques above N50,OOO shall not be eligible for payment over the counter, while extant limits of N10,000,000 on clearing cheques still subsist.
In compelling circumstances, not exceeding once a month, where cash withdrawals above the prescribed limits is required for legitimate purposes, such cash withdrawals shall not exceed and for individuals and corporate organisations, respectively, and shall be subject to the referenced processing fees in (I) above, in addition to enhanced due diligence and further information requirements.
Further to above, you are required to obtain the following information at the minimum and upload same on the CBN portal created for the purpose:
- Valid means of identification of the payee (National ID, International Passport, Driver’s License).
- Bank Verification Number (BVN) of the payee.
- Notarized customer declaration of the purpose for the cash withdrawal.
- Senior management approval for the withdrawal by the Managing Director of the drawee, where applicable.
- Approval in writing by the MD/CEO of the bank authorizing the withdrawal.
What is expected of banks
- Monthly returns on cash withdrawal transactions above the specified limits should be rendered to the Banking Supervision Department.
- Compliance with extant AML/CFT regulations relating to KYC, ongoing customer due diligence and suspicious transaction reporting etc. is required in all circumstances.
- Customers should be encouraged to use alternative channels (internet banking, mobile banking apps, USSD, cards/POS, eNaira, etc.) to conduct their banking transactions.
Warning to banks
Finally, please note that aiding and abetting the circumvention of this policy will attract severe sanctions.