The Central Bank of Nigeria (CBN) has increased the weekly cash withdrawal limits for individuals and corporate entities to N500,000 and N5 million, respectively.
Individual cash withdrawals per week were previously limited to N100,000, while corporate organizations were limited to weekly withdrawals of N500,000.
The new policy's reviewed limits were contained in a circular numbered BSD/DIR/PUB/LAB/015/073 and dated December 21, 2022.
Mr Haruna Mustapha, Director of Banking Supervision, issued the circular.
According to the CBN, any withdrawal that exceeds the set limits must be approved in writing by the bank's Managing Director.
Third-party cheques in excess of N100,000 are not payable.
Third Party Cheques worth more than N1 million will not be eligible for over-the-counter withdrawal.
The central bank warned that any bank that colludes with its customers to avoid the policy would face severe penalties.
The new policy goes into effect on January 9, 2023.
Following our circular BSD/DIRIPUB/LAB/015/069 dated December 6, 2022, on the above subject, and based on feedback from stakeholders, the CBN hereby makes the following reviews:
"The maximum weekly limit for cash withdrawal across all channels by individuals and corporate organisations shall be N500,000 and N5,000,000, respectively.
"In compelling circumstances where cash withdrawal above the limits in (1) above is required for legitimate purposes, such requests shall be subject to a processing fee of three per cent and five per cent for individuals and corporate organisations, respectively.
"Further to (2) above, the financial institution shall obtain, at a minimum, the following information from the customer and upload it to the CBN portal created for the purpose."
a. A valid means of identification for the payee (National ID, International Passport, or Driver's License); the payee's Bank Verification Number, BVN; both the payee and the payer's Tax Identification Number, TIN; Approval in writing by the financial institution's MD/CEO authorizing the withdrawal.
The existing limit of N10m on clearing cheques remains in place.
"Third-party cheques above N100,000 shall not be eligible for payment over the counter, while the extant limit of N10million on clearing cheques still subsists.
Monthly returns on cash withdrawals in excess of certain limits
"Kindly further note the following: "Monthly, returns on cash withdrawal transactions above the specified limits should be rendered to the Banking Supervision, Other Financial Institutions Supervision and Payments System Management Departments as applicable.
Compliance with existing AML/CFT regulations regarding KYC, CDD, currency, STR, and so on is required.
"Compliance with extant AML/CFT regulations relating to KYC, ongoing Customer due diligence, CDD, currency and suspicious transaction reporting, STR etc., is mandatory in all circumstances.
"Customers should be encouraged to conduct their banking transactions through alternative channels (internet banking, mobile banking apps, USSD, cards/POS, eNaira, etc.).
“The above directives supersede that of December 6, 2022, and take effect nationwide from January 9, 2023.”
“Bank and Mobile Money Agents are important participants in the financial system, enabling access to financial services in underserved and rural communities. They will continue to perform these strategic functions, in line with existing regulations governing their activities.
