22.7 C
Friday, July 19, 2024

CBN makes U-turn, reviews cash withdrawal policy to N500,000 for individuals, N5m for corporates

Must read

THE Central Bank Of Nigeria (CBN) has reviewed its policy on cashless policy, fixing the maximum

weekly limit for cash with- drawal across all channels by individuals and corporate or- ganisations at N500,000 and N5 million, respectively.

The CBN added that in compelling circumstances where cash withdrawal above the limits above is required for legitimate pur- poses, such requests shall be subject to a processing fee of three per cent and five per cent for individuals and corporate organisations, re- spectively.

According to the apex bank, the new policy super- cedes the earlier one issued on December 6, 2022 and takes effect from January 9, 2023.

In a letter to All Deposit Money Banks (DMBS) and Other Financial Institutions, (Payment Service Banks (PSBS), Primary Mortgage Banks (PMBs), Microfin- ance, Banks (MFBS)), Mobile Money Operators (MMOs) and agents dated Decem- ber 21, 2022 with reference number:

BSD/DIR/PUB/ LAB/015/073, the CBN said its decision to review the cash withdrawal limits policy was based on feedback re- ceived from stakeholders.

Tagged, “Re: Naira Re- design Policy – Revised Cash Withdrawal Limits,” and signed by Haruna B. Mustafa, Director of Bank- ing Supervision, the CBN said, “Third party cheques above N100,000 shall not be eligible for payment over the counter, while the extant limit of N10 million on clearing cheques still subsist.”

The CBN added that “Bank and mobile money agents are important participants in the financial system, en- abling 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,” as “the CBN recognises the vital role that cash plays in supporting underserved and rural communities and will ensure an inclusive approach as it implements the trans- ition to a more cashless society.

“All banks and OFIs are to note that aiding and abet- ting the circumvention of this policy will attract severe sanctions.”

In furtherance to the re- vised policy, the CBN directs the financial institution to obtain some information from the customer, at the minimum, and upload the same on the CBN portal created for the purpose.

They are; “Valid means of identification of the payee (National ID, International Passport, or Driver’s Li- cence); Bank Verification Number (BVN) of the payee; Tax Identification Number (TIN) of both the payee and the payer; approval in writ- ing by the MD/CEO of the financial institution authorising the withdrawal.”

The CBN also directed those concerned to note that “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 extant AML/CFT regulations relating to KYC, on-going customer due diligence, currency and suspicious transaction re- porting etc. is mandatory in all circumstances.

“Customers should be en- couraged to use alternative channels (internet banking, mobile banking apps, USSD, cards/POS, eNaira, etc.) to conduct their banking trans- actions.”

The CBN had in its earlier circular with reference number BSD/DIR/PUB/ LAB/015/069 and dated December 6, 2022, pegged minimum cash withdrawal by individuals over-the- counter at N100,000.00 per week and N500,000.00 for corporate bodies.

- Advertisement -spot_img

More articles


Please enter your comment!
Please enter your name here

- Advertisement -spot_img

Latest article