The Central Bank of Nigeria has limited cash withdrawal over the counter (OTC) by individuals and corporate organizations per week to N100,000 and N500,000 respectively.
The bank said on Wednesday that the decision was in line with it’s Cash-less policy.
Haruna B. Mustapha, the director of banking supervision in a statement directed alldeposit money banks (DMBs) and other financial institutions (OFIs) to adhere to the guideline of be fined.
In the statement titled “Letter to All Deposit Money Banks (OMBS) and Other Financial institutions, Payment Service Eanks (PSBs), Primary Mortaage Banks (PMBS) and Microfinance Banks (MFBS)”, the Apex Bank said “Further to the launch of the redesigned Naira notes by the President of the Federal Republic of Nigeria, on Wednesday, November 23, 2022 and in line with the Cash-less policy of the CBN, al deposit money banks (DMBs) and other financial institutions(OFIs) are hereby directed to note and comply with the following:
1. The maximum cash withdrawal over the counter (OTC) by individuals and corporate organizations per week shall henceforth be N100,000 and N500,000 respectively. Withdrawals above these limits shall attract processing fees of 5% and 10%, respectvely.
2. Third party cheques above N50,000 shall not be eligible for payment over the
cOunter, while extant limits of N10,000,000 on clearing cheques still subsist.
3. The maximum cash withdrawal per week via Automated Teller Machine (ATM) shall be 100,000 subject to a maximum of N20,000 cash withdrawal per day.
4. Only denominations of N200 and below shal be loaded into the ATMs.
5. The maximum cash withdrawal via point of sale (PoS) terminal shall be M20,000 daily.
6. In compelling circumstances, not exceeding once a month, where cash withdrawals above the prescribed limits is required for legitimate purposes, such cash withdrawals shall not exceed N5,000,000.00 and N10,000,000.00 for individuals and corporate organisations, respectively, and shall be subject to the referenced processing fees in (1) above, in addition to enhanced due diligence and further information requirements.
“Further to (6) above. you are required to obtain the following information at the
minimum and upload same on the CBN portal created for the purposeClassified as Confidential:
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 bank authorising the withdrawal.
“Please further note the following that Monthly retuns on cash withdrawal transactions above the specified limits should be rendered to the Banking Supervision Department.
“Compliance with extant AMLUCFT reguations relating to KYC, ongoing Customer due diligence and suspicious transaction reporting etc. is required in all circumstances.
“Customers should be encouraged to use altemative channels (ginternet 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 sanctons”.
“The above regulatory directives take effect nationwide from January 9, 2023”.