CBN imposes new Cash Withdrawal limits on Nigeria Bank Accounts – Full Circular to Banks

The Central Bank of Nigeria (CBN) in a letter sent to banks and Other Financial Institutions, today 06 December 2022, has imposed new cash withdrawal limits on all Nigeria Bank Accounts.

The CBN letter, dated 06 December 2022 with the subject, “Letter to All Deposit Money Banks (DMBS) and Other Financial Institutions (Payment Service Banks (PSBs), Primary Mortgage Banks (PMBs) and Microfinance Banks (MFBs)” was signed by Haruna B. Mustafa, Director of Banking Supervision at CBN.

The CBN Naira Redesign Policy – Revised Cash Withdrawal Limits

Further to the launch of the redesigned Naira notes by the President of the Federal Republic of Nigeria, on Wednesday, November 23, 2022 and in line with the Cash- less policy of the CBN, all deposit money banks (DMBS) and other financial institutions (OFIS) are hereby directed to note and comply with the following:

1. 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.

2. 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.

3. The maximum cash withdrawal per week via Automated Teller Machine (ATM) shall be N100,000 subject to a maximum of N20,000 cash withdrawal per day.

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

5. The maximum cash withdrawal via point of sale (POS) terminal shall be N20,000 daily.

6. 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 N5,000,000.00 and 10,000,000.00 for individuals and corporate organisations, respectively, and shall be subject to the referenced processing fees in (1) above, in addition to enhanced due diligence and further information requirements.

Further to (6) above, you are required to obtain the following information at the minimum and upload same on the CBN portal created for the purpose:

  1. Valid means of identification of the payee (National ID, International Passport, Driver’s License).
  2. Bank Verification Number (BVN) of the payee.
  3. Notarized customer declaration of the purpose for the cash withdrawal.
  4. Senior management approval for the withdrawal by the Managing Director of the drawee, where applicable.
  5. Approval in writing by the MD/CEO of the bank authorising the withdrawal.

Please further note the following:

i. Monthly returns on cash withdrawal transactions above the specified limits should be rendered to the Banking Supervision Department.

ii. Compliance with extant AML/CFT regulations relating to KYC, ongoing customer due diligence and suspicious transaction reporting etc. is required in all circumstances.

iii. Customers should be encouraged to use alternative channels (internet banking, mobile banking apps, USSD, cards/POS, eNaira, etc.) to conduct their banking transactions.

Finally, please note that aiding and abetting the circumvention of this policy will attract severe sanctions.

The above regulatory directives take effect nationwide from January 9, 2023.

Read More Post on the New Naira Notes and Cash Withdrawal Limits below

CBN imposes new Cash Withdrawal limits on Nigeria Bank Accounts – Full Circular to Banks
Reps ask CBN to suspend new Cash Withdrawal Limits, summons CBN Governor
CBN Circular on Revised Cash Withdrawal Limits effective 09 January 2023
CBN Launches Old Naira to New Naira Notes Swap Programme
CBN extends deadline for acceptance of old naira notes to February 2023
Full Press Statement by CBN on Progress of Implementation of New Naira Notes & Extension of Deadline till February 2023

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