The Central
Bank of Nigeria (CBN), on Tuesday, imposed limits on weekly cash
withdrawals by individuals and corporate entities.
The new policy will take effect on January 9, 2023.
It is aimed at reducing the amount of physical cash
circulating in the economy and encouraging more electronic-based transactions.
The CBN also vowed to impose severe sanctions on banks and other financial institutions aiding and abetting the circumvention of the policy.
The development comes two weeks after the launch of the redesigned
N200, N500 and N1,000 naira notes by President Muhammadu Buhari.
Below are 10 things to know about the new policy.
- Over-the-counter
cash withdrawal by individuals and organisations per week is now reduced
to a maximum of N100,000 and N500,000, respectively.
- Third-party
cheques above N50,000 will not be eligible for payment over the counter.
- The
existing limit of N10 million on clearing cheques still subsists.
- Cash
withdrawal via automated teller machine (ATM) is limited to a maximum of
N20,000 daily, while the weekly limit is N100,000.
- Only
naira denominations of N200 and below will be available at ATMs.
- Maximum
withdrawal from the point of sale (PoS) terminals will be N20,000 daily.
- Once a
month, the CBN says it will allow individuals and organisations to make
cash withdrawals above the prescribed limits if it is required for
legitimate purposes.
- The
“special” cash withdrawals cannot exceed N5 million and N10 million for
individuals and organisations, respectively.
- Individuals
will be required to pay a processing fee of five percent for cash
withdrawals above the prescribed limits while organisations will pay 10
percent.
- For
cash withdrawals above the specified limits, banks are required to do due
diligence and request documents such as the bank verification number (BVN)
of the payee, and valid means of identification of the payee, among others.
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