The Central Bank of Nigeria (CBN) has reversed its decision to put ATM and over the counter cash withdrawal limits for individuals at N100,000 and corporate organizations, N500,000 per week.
In a circular shared on Wednesday, the central bank directed all Deposit Money Banks and other financial institutions, including Payment Service Banks, Primary Mortgage Banks, Microfinance Banks, and Mobile Money Operators and agents, to disregard the directive given earlier and implement hence, a new withdrawal policy.
The circular signed by the Director of Banking Supervision, CBN, Haruna Mustapha, said the new order of cash withdrawal by Nigerian financial institutions is as follows: N500,000 for individuals and N5 million for corporate organizations maximum. This is a raise from the previous payment order contained in the circular dated December 6, 2022, billed to take effect nationwide from January 9, 2023.
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The Circular stated: “Following our circular BSD/DIR/PUB/LAB/015/069 dated December 6, 2022 on the above subject and based on feedback received from stakeholders, the CBN hereby makes the following reviews: The maximum weekly limit for cash withdrawal across all channels by Individuals and corporate organizations shall be N500,000 and N5 000,000 respectively.
“In competing circumstances where cash withdrawal above the limits in (1) above is required for legitimate purposes, such requests shall be subject to a processing fee of 3 percent and 5 percent for individuals and corporate organizations, 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 (BVN) of the payee Tax identification Number (TIN) of both the payee and the payer. Approval in waiting by the MD/CEO of the financial institution authorizing 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.
“Kindly further note the following: Monthly returns on cash withdrawal transactions above the specified limits should be rendered to the Banking Supervision, Other Financial Institutions Supervision and Payments System Management Departments as applicable.
“Compliance with extant AML/CFT regulations relating to KYC, on-going customer due diligence, currency and suspicious transaction reporting etc. is mandatory 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,
“Bank and Mobile Money Agents are important participants in the financial system, enabling access to financial services in underserved and rural communities They will continue to perform these strategic functions, in line with existing regulations governing their activities.
“The CBN recognizes the vital role that cash plays in supporting underserved and rural communities and will ensure an inclusive approach as it implements the transition to a more cash-less society
“All banks and OFIs are to note that aiding and abetting the circumvention of this policy will attract severe sanctions.
“The above directives supersede that of December 6, 2022 and take effect nationwide from January 9, 2023.”
The CBN has been under intense pressure to review the withdrawal policy introduced early this month, a development widely seen as the work of politicians who want to buy votes. The policy has been criticized by both the Nigerian public and lawmakers over concerns that it will stifle economic growth among other things.
Both the upper and lower chambers of the National Assembly had asked the CBN governor Godwin Emefiele to review the policy upward. Days ago, the Department of State Services (DSS) failed to secure a court order to arrest Emefiele, in a move believed to have been orchestrated by politicians seeking to force upward review of the withdrawal limits.
Earlier this month, Emefiele said the policy may be adjusted even though he has President Muhammdu Buhari’s backing to implement it.