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CBN Limits Cash Withdrawals to N100K Weekly

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The Central Bank of Nigeria (CBN) has ordered financial institutions to ensure that weekly cash withdrawals by individuals and corporate entities do not exceed N100,000 and N500,000.

This was contained in a circular, Tuesday, signed by CBN Director of Banking Supervision, Haruna Mustaf.

According to the circular, said all regulatory directives take effect nationwide from January 9, 2023.

Other parts of the circular read;

“Further to the launch of the redesigned naira notes by the President, Muhammadu Buhari  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 organizations per week shall henceforth be N100,000 and N500,000 respectively. Withdrawals above these limits shall attract processing fees of 5% and 10%, 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.

5. The maximum cash withdrawal via the point of sale terminal shall be N20,000 daily.”

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a. Valid means of identification of the payee (National Identity Card, International Passport, Driver’s 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 authorizing 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.

“Finally, please note that aiding and abetting the circumvention of this policy will attract severe sanctions.

“The above regulatory directives take effect nationwide from January 9, 2023. Please be guided accordingly.”

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