CBN New Policy – According to the CBN’s latest policy, as of January 9th, 2023, Nigerians will no longer be able to withdraw above 20,000 naira cash through the Point of Sale (POS) and Over the Counter (OTC) every day
Individuals will only be allowed to withdraw 100,000 cash per week, 20,000 naira maximum per day for individuals and 500,000 for corporate organizations.
This CBN New policy may negatively affect some people, however, will have a lot of benefits to the nation, CBN has stated that only 200 notes and below will be dispensed in all ATMs across the country, which will make N1000 and N500 notes scarce.
This implies that inflation will be drastically reduced especially in the area of printing higher denomination notes such as N1000 and N500.
Printing N200 will bring smaller denominations into circulation and bridge inflation
List of CBN New Policies as released by the Governor of CBN
- 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.
- Third-party cheques above N50,000 shall not be eligible for payment over the counter, while extant limits of 110,000.000 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 the point of sale (PoS) terminal shall be N20.000 daily.
- In compelling circumstances, not exceeding once a month, where cash withdrawals above the prescribed limits are required for legitimate purposes, such cash withdrawals shall not exceed 15,000,000.00 and 110,000.000.00.
Meanwhile, 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.
- Valid means of identification of the payee (National ID, International Passport, Driver’s License).
- Bank Verification Number (BVN) of the payee.
- Notarized customer declaration of the purpose of the cash withdrawal.
- Senior management approval for the withdrawal by the Managing Director of the drawee, where applicable.
- Approval in writing by the MD/CEO of the bark authorising the withdrawal.
Please further note the following:
- Monthly returns on cash withdrawal transactions above the specified limits should be rendered to the Banking Supervision Department.
- Compliance with extant AML/CFT regulations relating to KYC, ongoing customer due diligence and suspicious transaction reporting etc. is required in all circumstances.
- Customers should be encouraged to use alternative channels (internet banking, mobile banking apps, USSD, cards/POS. eNaira, etc.) to conduct their banking transactions.
According to the memo, anyone found aiding and abetting the circumvention of this CBN New policy will attract severe sanctions.
Found out more about the memo here
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