By Enyichukwu Enemanna
The Central Bank of Nigeria (CBN) has reversed the policy which pegged cash withdrawal at N100,000 and N500,000 per week for individual and corporate account holders respectively.
The apex bank subsequently increased the maximum weekly limit for cash withdrawals across all channels individuals and corporate accounts to N500,000 and N5 million, respectively.
“The CBN hereby makes the following reviews: (1) the maximum weekly limit for cash withdrawal across all channels by individuals and corporate organisations shall be N500,000.00 and N5,000,000.00 respectively,” the bank said in a statement Wednesday by the director of banking supervision department, Haruna Mustafa.
This comes after the policy was heavily criticised especially among politicians who believe the policy is targeted at them, coming barely two months to general elections in Nigeria.
The House of Representatives had also waded in, seeking increase in the withdrawal limit, extending invitation to the CBN governor, Godwin Emefiele which he did not honour.
In the Wednesday circular, the apex bank said it made the upward review based on feedback received from stakeholders.
The release on Wednesday added, “ In compelling circumstances where cash withdrawal above the limits in (1) is required for legitimate purposes, such requests shall be subject to a processing fee of three per cent and five per cent for individuals and corporate organisations, respectively.
“Further to (2) above, the financial institution shall obtain the following information from the customer, 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, or driver’s license), bank verification number of the payee, tax identification number of both the payee and the payer, and an approval in writing by the MD/CEO of the financial institution authorising the withdrawal.
“Third party cheques above N100,000 shall not be eligible for payment over-the-counter, while the extant limit of N10 million on clearing cheques still subsist.”
The CBN also said monthly returns on cash withdrawal transactions above the specified limits should be rendered to the banking supervision department, other financial institutions supervision and payments system management departments.
It added, “Compliance with extant AML/CFT regulations relating to the 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.
The apex bank noted that it recognised the vital role that cash played in supporting underserved and rural communities and would ensure an inclusive approach as it implemented the transition to a more cashless society.
“All banks and OFls are to note that aiding and abetting the circumvention of this policy will attract severe sanctions,” CBN said.
“The above directives supersede that of December 6, 2022 and take effect nationwide from January 9, 2023,” the CBN said.
