CBN limits cash withdrawals to N100k, N200 as ATM denomination

As from January 9, 2023, individuals and organisations will no longer be able to withdrawal cash past a certain quantity from banks, the Central Bank of Nigeria, CBN, introduced on Tuesday.

In a brand new memo issued to banks and signed by the Director of Banking Supervision, Haruna .B. Mustafa, the CBN said people will only be able to withdraw N100,000 consistent with week ( from over the counter, Point of Sale Machines or the Automated Teller Machines).

As for business enterprise, the withdrawal of not anything greater than N500,000 consistent with week became authorised.The apex bank also directed banks to ensure that ATMs don’t pay past N200 denomination.The memo examine, “Further to the release of the redesigned naira notes by means of the President, Major General Muhammadu Buhari (retd.), on Wednesday, November 23, 2022, and consistent with the cashless policy of the CBN, all deposit cash banks and other economic institutions are hereby directed to note and follow the following:

“1. The most cash withdrawal over-the-counter via individuals and company businesses in step with week shall henceforth be N100,000 and N500,000 respectively. Withdrawals above these limits shall entice processing expenses of 5% and 10%, respectively.

“2. Third-party cheques above N50,000 shall now not be eligible for charge over the counter, at the same time as extant limits of N10,000,000 on clearing cheques nonetheless subsist.

“3. The most cash withdrawal in line with week thru Automated Teller Machine shall be N100,000 difficulty to a most of N20,000 coins withdrawal per day.

“four. Only denominations of N200 and under shall be loaded into the ATMs.

“five. The maximum cash withdrawal thru the factor of sale terminal will be N20,000 day by day.

“6. In compelling instances, now not exceeding as soon as a month, wherein coins withdrawals above the prescribed limits are required for legitimate functions, such cash withdrawals shall now not exceed N5,000,000.00 and N10,000,000.00 for people and corporate businesses, respectively, and will be problem to the referenced processing charges in (1) above, further to more advantageous due diligence and in addition information necessities.

“Further to (6) above, you’re required to reap the following data at the minimum and add same at the CBN portal created for the motive:

“a. Valid way of identity of the payee (National Identity Card, International Passport, Drivers License.). B. Bank Verification Number of the payee. C. Notarised patron announcement of the purpose of the cash withdrawal. D. Senior control acclaim for the withdrawal by means of the Managing Director of the drawee, in which applicable. E. Approval in writing by using the MD/CEO of the bank authorising the withdrawal.

“Please in addition notice the following: i. Monthly returns on coins withdrawal transactions above the required limits should be rendered to the Banking Supervision Department. Ii. Compliance with extant AMUCFT regulations relating to the KYC, ongoing patron due diligence and suspicious transaction reporting and so forth., is needed in all situations. Iii. Customers must be recommended to apply opportunity channels (net banking, cell banking apps, USSD, cards/POS. ENaira, and so on.) to conduct their banking transactions.”Finally, please notice that helping and abetting the circumvention of this coverage will appeal to excessive sanctions.

“The above regulatory directives take impact nationwide from January nine, 2023. Please be guided for that reason.”