CBN bows to pressure, raises cash withdrawal limits

The Central Bank of Nigeria (CBN) has increased the weekly limits for cash withdrawals across all channels by individuals to N500, 000 from N100,000 and corporate organisations to N5 million from N500,000.

This was announced in a letter addressed to all banks and other financial institutions on Wednesday by Haruna Mustafa, director of Banking Supervision of CBN, effective January 9, 2023.

“Following our circular dated December 6, the CBN hereby makes the following reviews.
In compelling circumstances where cash withdrawal above the limits is required for legitimate purposes, such requests shall be subject to a processing fee of three percent and five percent for individuals and corporate organisations respectively,” it said.

It added that third-party cheques above N100,000 shall not be eligible for payment over the counter, while the extant limit of N10 million on clearing cheques still subsist.

Further details from the apex bank showed that monthly returns on cash withdrawal transactions above the specificied limits should be rendered to the banking supervision, other financial institutions supervision and payments systems management department as applicable.

The CBN said: “Compliance with extant AML/CFT regulations relating to KYC, on going customer due diligence, currency and suspicious transactions reporting etc. is mandatory in all circumstances.

“Customers should be encouraged to use alternative channels ( internet banking, mobile banking apps, USSD, cards , Point of Sales, eNaira etc) to conduct the banking transactions.”

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It added that CBN recognised the vital role that cash plays in supporting undeserved and the rural communities and will ensure an inclusive approach as it implements the transition to a more cash less society.

“All banks and OFI are to note that aiding and abetting the circumvention of this policy will attract severe sanctions,” the bank said.