BREAKING: CBN cuts over-the-counter withdrawals to N100,000 per week for individuals

The Central Bank of Nigeria (CBN) on Tuesday announced a new policy that mandates Deposit Money Banks (DMBs) and other financial institutions to ensure that over-the-counter cash withdrawals by individuals do not exceed N100,000 per week.

This was contained in a letter by Director of Banking Supervision, Haruna B. Mustafa, addressed to all DMBs and other financial institutions which was seen by WesternPost.

The apex bank also announced N500,000 per week for corporate entities.

According to the circular, this will take effect nationwide from January 9, 2023.

“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%, respectively.

“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.

“The maximum cash withdrawal per week via Automated Teller Machine (ATM) shall be NI00,000 subject to a maximum of N20,000 cash withdrawal per day.

“Only denominations of N200 and below shall be loaded into the ATMs

“The maximum cash withdrawal via point of sale (POS) terminal shall be N20,000 daily,” the letter read.

It further gave the room for withdrawals exceeding these figures only once in a month, with stringent conditions.

“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 and for individuals and corporate organisations, respectively, and shall be subject to the referenced processing fees in (I) above, in addition to enhanced due diligence and further information requirements.

“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,” it added.

The apex bank further warned that aiding and abetting the circumvention of the policy will attract severe sanctions.

The new policy is coming barely weeks after President Muhammadu Buhari launched the newly redesigned N200, N500, and N1000 banknotes.