CBN reduces daily withdrawal limit to N20,000
The Central Bank of Nigeria, CBN, has reduced the amount a person can withdraw on individual account daily to N20,000.
The CBN has reduced the amount a person can withdraw over the counter third party cheques daily to N50,000.
The decision of the apex bank will reduce the flow of cash in circulation ahead of the official release of the newly redesigned Nigerian currency.
Godwin Emefiele, the Governor of CBN had before the announcement of the redesigning of the Nigerian currency, declared his intention to render the country’s economy 100% cashless.
In a circular signed by Haruna Mustafa, the CBN Director, Banking Supervision, on Tuesday (today), it was noted that banks will fill their Automated Teller Machines (ATMs) will only N200 notes — the development which will take effect from January 9, 2023.
“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,” it said.
“In compelling circumstances, not exceeding once a month, where cash withdrawals above the prescribed limits is required for legitimate purposes, such cash withdrawals shall not exceed N5,000,000.00 and N10,000,000.00 for individuals and corporate organizations, respectively, and shall be subject to the referenced processing fees in (1) above, in addition to enhanced due diligence and further information requirements.”
The apex bank stated that for individuals or corporate organisations to be eligible to make special withdrawals, they will have to upload on the portal of the CBN to be assigned for that purpose, valid means of identification of the payee such as International Passport, National ID, Bank Verification Number (BVN), Driver’s License of the payee.
The mother of all Nigerian banks has also ordered that banks provide “monthly returns on cash withdrawal transactions above the specified limits should be rendered to the Banking Supervision Department, compliance with extant AML/CFT regulations relating to 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 CBN added that attempt to aide and abet the circumvention of the directive will lead to severe sanctions.
