Fakoyejo OlalekanThe maximum weekly cash withdrawal for businesses and individuals across all channels has been increased by the Central Bank of Nigeria (CBN).
CBN revised the previous cash withdrawal policy, instructing commercial banks and other financial institutions that corporate organisations limit has been increased to N5 million from N500,000.
For individual withdrawals, the central bank increased it to N500,000 from N100,000. Also, the CBN said Third party cheques above N100,000 (increasing it from N50,000) shall not be eligible for payment over the counter, while the extant limit of N10 million on clearing cheques still subsists.
According to the circular released on Wednesday, the CBN threatened to sanction banks and other financial institutions that aid and abet the circumvention of the policy.
Recall that the cash withdrawal policy, which was first reviewed in the first week of December, had met criticism among Nigerians, with the House of Representatives suggesting the central bank suspend the restriction, and the Senate asking the CBN to increase the limit.
Following the public outcry, the CBN released a revised circular, informing Deposit Money Banks (DMBS) and Other Financial Institutions [Payment Service Banks (PSBs). Primary Mortgage Banks (PMBs). Microfinance Banks (MFBs) and Mobile Money Operators (MMOs) and Agents of the changes.
What CBN says in revised cash withdrawal policy
- The maximum weekly limit for cash withdrawal across alt channels by individuals and corporate organizations shall be N500,000.00 and respectively.
- In compelling circumstances where cash withdrawal above the limits in (1) above is required for legitimate purposes, such requests shall be subject to a processing fee of 3% and 5% for individuals and corporate organizations, respectively.
- Further to (2) above, the financial institution shall obtain the following information from the customer, at the minimum, and upload same on the CBN portal created for the purpose:
- Valid means of identification of the payee (National ID, International Passport, or Driver’s License).
- Bank Verification Number (BVN) of the payee.
- Tax Identification Number (TIN) of both the payee and the payer
- Approval in writing by the MD/CEO of the financial institution authorising the withdrawal.
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