CBN limits cash withdrawal to N100,000 weekly

A sweeping new currency management policy announced yesterday by the Central Bank of Nigeria (CBN) has put a cap on cash withdrawals by individuals and corporate bodies

Beginning from January 9, individuals and companies will only be able to withdraw a maximum of N100, 000 and N500, 000 cash respectively in a week across the counter, the apex bank said.

The revised cash withdrawal limits also affect other payment channels; including Automated Teller Machine (ATM), Point of Sale (PoS) and cheque-based transaction.

It applies generally to all commercial banks and other cash-transaction banks such as payment service banks (PSBs), primary mortgage banks (PMB) and microfinance banks (MFBs).

Under the policy, individuals and companies withdrawing cash directly from the banking hall will pay five per cent and 10 per cent on withdrawals above the approved threshold.

The bank also pegged the maximum cash withdrawal through ATM is set at N100, 000 per week, subject to a maximum daily withdrawal of N20, 000.

In the same vein, the maximum cash withdrawal through PoS terminal shall be N20, 000 per day.

The apex bank also imposed more stringent conditions with special documentation and approval for such compelling above-limit withdrawals

According to the apex bank, 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, and shall be subject to the referenced processing fees as well as additional enhanced due diligence and information requirements.

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