The Central Bank of Nigeria has increased the weekly withdrawal limits for individuals and businesses to N500,000 and N5 million, respectively.
Individual weekly withdrawal limitations were formerly set at N100,000, while corporate weekly withdrawal limits were set at N500,000.
Circular number BSD/DIR/PUB/LAB/015/073, issued December 21, 2022, provided the revised restrictions under the new policy.
Mr. Harun Mustapha’s circular as Director of Banking Supervision.
According to the CBN, any withdrawals above the established limitations must be approved in writing by the bank’s Managing Director.
In addition, Third Party Cheques in excess of N1 million will no longer be eligible for over-the-counter withdrawal.
Any bank that conspires with its customers to avoid the regulation would face harsh consequences, according to the central bank.
The new regulation will go into force on January 9, 2023.
The circular states, in part, “Following our circular BSD/DIRIPUB/LAB/015/069 dated December 6, 2022, on the above subject and based on feedback received from stakeholders, the CBN, hereby makes the following reviews:
“The maximum weekly limit for cash withdrawal across all channels by individuals and corporate organizations shall be N500,000 and N5,000,000, respectively.
“In compelling circumstances where cash withdrawal above the limits in (1) above is required for legitimate purposes, such requests shall be subject to a processing fee of three percent and five percent for individuals and corporate organizations, respectively.
“Further to (2) above, the financial institution shall obtain the following information from the customer, at the minimum, and upload the same on the CBN portal created for the purpose
a. Valid means of identification of the payee (National ID, International Passport, or Driver’s License); Bank Verification Number, BVN, of the payee; Tax Identification Number, TIN, of both the payee and the payer; Approval in writing by the MD/CEO of the financial institution authorizing the withdrawal.
Existing N10 million limit on cheque clearance is still in effect
“Third-party cheques above N100,000 shall not be eligible for payment over the counter, while the extant limit of N10million on clearing cheques still subsists.
Returns monthly on cash withdrawals exceeding set limitations
“Kindly further note the following: “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.
Mandatory compliance with existing AML/CFT requirements on KYC, CDD, currency, STR, etc.
“Compliance with extant AML/CFT regulations relating to KYC, ongoing Customer due diligence, CDD, currency and suspicious transaction reporting, STR, etc., is mandatory in all circumstances.
“Customers should be encouraged to use alternative channels (internet banking, mobile banking apps, USSD, cards/POS, eNaira, etc.) to conduct their banking transactions.
“Bank and Mobile Money Agents are important participants in the financial system, enabling 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.
“The CBN recognizes the vital role that cash plays in supporting underserved and rural communities and will ensure an inclusive approach as it implements the transition to a more cash-less society.
“All banks and OFls are to note that aiding and abetting the circumvention of this policy will attract severe sanctions.
“The above directives supersede that of December 6, 2022, and take effect nationwide from January 9, 2023.”