The Central Bank of Nigeria (CBN) has taken a step further in the implementation of its cashless policy and stimulate people to explore alternative payment channels. The Apex Bank has directed Deposit money banks and other financial institutions to ensure that individuals’ and corporate entities’ over-the-counter cash withdrawals per week do not exceed N100,000 and N500, 000, respectively. Speaking in relation to the development, Osita Nwasinobi, CBN spokesperson, said it was unhealthy for people to carry huge sums of money around. Issuing the directive in a circular it released recently, the CBN said the policy would take effect nationwide from January 9, 2023. The Apex bank explained that after the policy takes effect, all cash withdrawals in excess of the stated limits would attract processing fees of five percent and 10 percent, respectively. He said: “We have a cashless policy. We want people to explore alternative payment channels”. Read the circular signed by Haruna Mustafa, director of banking supervision department: “Further to the launch of the redesigned naira notes by the President of the Federal Republic of Nigeria, in line with the cashless policy of the CBN, all deposit money banks (DMBs) and other financial institutions (OFls) are hereby directed to note and comply with the following: The maximum cash withdrawal over the counter (OTC) by individuals and corporate organisations per week shall henceforth be N100,000 and N500,000, respectively. Withdrawals above these limits shall attract processing fees of 5 percent and 10 percent, 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 N100,000 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 (PS) terminal shall be N20,000 daily”. The CBN, however, said 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 million and N10 million for individuals and corporate organisations, respectively. Such transactions, it said, would be subjected to processing fees in addition to enhanced due diligence and further information requirements. The circular read in part: “You are required to obtain the following information at the minimum and upload same on the CBN portal created for the purpose: a. Valid means of identification of the payee (national ID, international passport, driver’s license).
