Individuals and organizations will be subject to new cash withdrawal restrictions from the Central Bank of Nigeria beginning on January 9, 2023.
Goldennewsng reports that Individuals will only be able to withdraw N100,000 per week from over-the-counter, Point of Sale, or Automated Teller Machines, according to a new memo issued to banks on Tuesday and signed by the Director of Banking Supervision, Haruna.B. Mustafa. On the other hand, businesses will be able to access N500,000 per week.
Additionally, banks are required to only load N200 and lower denominations into their ATMs.
“Further to the launch of the redesigned naira notes by the President, Major General Muhammadu Buhari (retd.),” read the memo. on Wednesday, November 23, 2022, and in accordance with the credit only approach of the CBN, all store cash banks and other monetary foundations are thus coordinated to note and consent to the accompanying:
“1. Individuals and businesses will now be able to withdraw a maximum of N100,000 and N500,000 from ATMs per week, respectively. Processing fees of 5% and 10% will be assessed for withdrawals in excess of these limits.
“2. While the current limit of N10,000,000 for clearing checks remains in place, third-party checks in excess of N50,000 will not be accepted for payment over the counter.
“3. The maximum amount that can be withdrawn from an automated teller machine each week is N100,000, with a daily maximum of N20,000.
“4. The ATMs can only hold denominations of less than N200.
“5. The daily limit for cash withdrawals from the point of sale terminal is N20,000.
The CBN stated that cash withdrawals exceeding the prescribed limits would be subject to enhanced due diligence and additional information requirements, in addition to the processing fees mentioned in (1) above, in compelling circumstances, not exceeding once per month, where cash withdrawals above the limits would be required for legitimate purposes.
Additionally, it stated that banks were required to obtain and upload the following information on the CBN portal created for this purpose:
“a. A valid means of identification for the payee (such as a driver’s license, international passport, or national identity card). b. The payee’s bank verification number. c. A customer declaration of the purpose of the cash withdrawal that has been notarized. d. Managing Director approval for the drawee’s withdrawal from senior management, if applicable. e. Written approval from the bank’s MD/CEO authorizing the withdrawal.
“Please also be aware of the following: i. The Banking Supervision Department ought to receive monthly returns on cash withdrawal transactions that go over the limits that have been specified. ii. compliance with the current AMUCFT regulations regarding the KYC, ongoing customer due diligence, and reporting of suspicious transactions, is necessary in every circumstance. iii. Customers should be encouraged to use alternative channels such as USSD, mobile banking apps, internet banking, and cards and POS. (e.g., eNaira) to carry out their banking activities.
Finally, please be aware that violating this policy will result in severe penalties for aiding in its circumvention.
“From January 9, 2023, the aforementioned regulatory directives will take effect nationwide. Please follow these instructions,” the memo continued.