The news
- All deposit money banks (DMBS), payment service banks (PSBs), and other financial institutions have been directed by the Central Bank of Nigeria (CBN) to limit cash withdrawals.
- Over-the-counter withdrawals (OTC) by individuals and organisations are now limited to ₦100,000 ($135) and ₦500,000 ($676), respectively.
- Withdrawals at Automated Teller Machines have also been limited to ₦20,000 ($27) per day and a total of ₦100,000 per week.
The Central Bank of Nigeria has sent a letter to all deposit money banks (DMBS), payment service banks (PSBs), and other financial institutions to limit cash withdrawals to further its cashless policy.
According to the letter dated Tuesday, November 6, 2022, withdrawals above the limits set by the CBN will attract a 5% processing fee.
Per the new directive,
- Over-the-counter withdrawals (OTC) by individuals and organisations are now limited to ₦100,000 ($135) and ₦500,000 ($676), respectively.
- Third-party cheques above ₦50,000 ($67) will not be eligible for payment over the counter
- Maximum withdrawal per week via Automated Teller Machines (ATMs) is now ₦100,000, while the limit for daily withdrawals is set at ₦20,000.
- Maximum cash withdrawals at point-of-sale (PoS) terminals have also been reduced to ₦20,000 ($27) daily.
The CBN, however, said that "in compelling circumstances" where higher cash withdrawals need to be made, they cannot exceed ₦5 million ($6,765) and ₦10 million ($13,513) for individuals and organisations, respectively.
Interestingly, such "compelling situations cannot be more than once a month.
The apex bank also urged financial institutions to encorage their customers to use digital channels for their transaction instead of cash.
The directive signed by Haruna Mustafa, Director of Banking Supervision CBN, will take effect from January 9, 2023.
