Just few days after the redesigned Naira notes were launched by President Mahmoud Buhari in Abuja, the federal government has taken a step further to mop up funds in the system as the Central Bank of Nigeria, CBN, yesterday, pegged weekly cash withdrawal.
In a release titled: “Naira Redesign Policy – Revised Cash Withdrawal Limit,” endorsed by the institution’s Director of Banking Supervisor, Haruna Mustafa, the Apex Bank directed all Deposit Money Banks (DMBs), Payment Services Banks (PSBs), Primary Mortgage Banks (PMBs), Microfinance Banks (MFBs) and other financial institutions nationwide to ensure that the maximum weekly cash withdrawal over the counter (OTC) for individual shall not exceed one hundred thousand naira (₦100,000) and corporate organisation was pegged weekly at five hundred thousand naira (₦500, 000).
The CBN also warned that withdrawal above the limited cash withdrawal would attract processing fees of 5% and 10% respectively. The Circular stated that henceforth third party cheques above ₦50,000 would not be eligible for payment over the counter, adding that extant limits of ₦10,000 on clearing cheques still subsist. The release also declared that a maximum cash withdrawal per week, via the ATM would not be more than ₦100,000 subject to maximum of ₦20,000 per day.
It further disclosed that only two hundred Naira and below would be loaded in the ATMs, adding that henceforth the maximum cash withdrawal via Point of Sale (PoS) terminal would be twenty thousand naira (₦20,000) daily. The CBN, however, stated that in compelling circumstances, not exceeding once a month, where cash withdrawals above the proscribed limits is required for legitimate purposes, such cash withdrawals would not exceed five million naira (₦5,000,000) for individuals and ten million naira (₦10,000,000) for organisations respectively, and would be subject to referenced processing fees as earlier stipulated.
This policy, according to the Apex Bank would enhance due diligence and further information requirements. The CBN which warned that aiding and abetting the circumvention of the policy would attract severe sanctions, advised individuals and corporate organisations to obtain further information at the minimum and upload same on the CBN portal created for the purpose. The release further disclosed that this policy would begin January 9, 2023.
