Deposit banks move to limit over-the-counter withdrawals to N10, 000

The Central Bank of Nigeria (CBN) has received a proposal to limit over-the-counter withdrawal to N10, 000 from a coalition of Deposit Money Banks under the aegis of the Bankers Committee.

The proposal is in a bid to drastically reduce the number of customers that physically visit the bank to make withdrawals. The plan if approved by the CBN would further reduce the cost of operations. Many of the banks have already laid off workers in this respect.

The measure will also encourage greater use of electronic banking including ATM machines and online money transfers by.

The recent directive from the Federal Government that all public accounts should come under the Treasury Single Account has been identified as a major factor in the losses currently being experienced by some banks. The TSA, according to some experts, deprived the banks of federal government deposits.

Some experts say that more bank workers may be sacked if the CBN agree curb withdrawals as the banks are proposing. This is because the fewer customers that come to the bank the less some staff will have to do and less relevant they become hence the decision to ease them out.