Cashless Policy: CBN Caps Withdrawals at N20,000 a Day, N100,000 a Week

In an effort to reduce cash transactions, frustrate activities of Kidnappers and other criminals, the Central Bank of Nigeria (CBN) on Tuesday directed all Deposit Money Banks (DMBs) and other financial Institutions (OFIs) to reduce their over the counter withdrawal to N100,000 per week for individual, while withdrawals by corporate organisations were capped at N500,000 per week.

According to the apex bank, withdrawals above these limits would attract 5% processing fees for individuals and 10% for corporate organisations.

For Automated Teller Machines (ATM), cash withdrawal was also capped at N100,000 per week with a maximum cash withdrawal of N20,000 per day. ATM operators are thereby advised to load only N200 denominations and below into their machines.

Similarly, Point of Sale (PoS) cash withdrawal was set at N20,000 a day.

However, in certain compelling circumstances, the central bank allows individuals and corporate organisations with legitimate reasons to withdraw cash of up to N15 million and N110 million, respectively.

Such transactions, however, will attract appropriate processing fees as stated above, in addition to enhanced due diligence and further information requirements as follow:

a. Valid means of identification of the payee (National ID, International Passport, Driver’s License).

b. Bank Verification Number (BVN) of the payee.

c. Notarized customer declaration of the purpose for the cash withdrawal.

d. Senior management approval for the withdrawal by the Managing Director of the drawee, where applicable.

e. Approval in writing by the MD/CEO of the bark authorising the withdrawal.

The apex bank advised financial institutions to start encouraging customers to embrace alternative channels for their financial transactions.

“Customers should be encouraged to use alternative channels (internet banking, mobile banking apps, USSD, cards/POS. eNaira, etc.) to conduct their banking transactions.

“Finally, please note that aiding and abetting the circumvention of this policy will attract severe sanctions.”

The new directive would take effect on January 9, 2023, Investors King reports.