From Uche Usim, Abuja
In a move towards deepening electronic banking, the Central Bank of Nigeria (CBN), on Tuesday, announced a new policy that mandates deposit money banks and other financial institutions to ensure that over-the-counter cash withdrawals by individuals and corporate entities do not exceed N100,000 and N500,000, respectively, per week. It translates to N20,000 per withdrawal.
It takes effect nationwide on January 9, 2023.
The revised cash withdrawal limits, contained in a circular issued by the CBN, added that cash withdrawals in excess of the stated limits will attract processing fees of 5% and 10%, respectively.
The new policy comes barely weeks after President Muhammadu Buhari launched the newly redesigned N200, N500, and N1000 banknotes.
The CBN said it wants to promote financial inclusion via electronic banking.
The statement read: “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,” the letter reads.
“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.”
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