In a renewed effort at having a firm grip on the liquidity in the system and as well drive its cashless policy, the Central Bank of Nigeria (CBN) has 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.
In a letter, BSD/DIR/PUB/LAB/015/069 addressed to Deposit Money Banks and Other Financial Instititutions and signed by Haruna B. Mustafa, Director, Banking Supervision, dated, December 6, 2022, CBN said the new directives take effect from December 9.
The letter further warned the operators that aiding and abetting the circumvention of the policy will attract severe sanctions.
Part of the letter,
NAIRA REDESIGN POLICY —REVISED CASH WITHDRAWAL Limits, says:
“Further to the launch of the redesigned Naira notes by the President of the Federal Republic of Nigeria, on Wednesday, November 23. 2022 and in line with the Cashless policy of the CBN, all deposit money banks (OMBs) and other financial insttutons (OF Is) are hereby directed to note and comply with the following:
“The maximum cash withdrawal over the counter (OTC) by individuals and corporate organizatons per week shall henceforth be 100.000 and 500.000 respectively. Withdrawals above these imits shail attract processing fees of 5% and 10%, respectively.
“Third party cheques above 50.000 shall not be eligible for payment over the counter, while extant limits of 10,000,000 on cleanng cheques still subsist.
The maximum cash withdrawal per week via Automated Teller Machine (ATM) shail be 100.000 subject to a maximum of 420,000 cash withdrawal per day. Only denominatons of 200 and below shall be loaded into the ATMs.
The maximum cash withdrawal via point of sale (PoS) terminal shall be N20,000 Gaity.
“In compelling circumstances, not exceeding once a month, where cash withdrawals above the prescnbed limits is required for legitimate purposes. such cash withdrawals shall not exceed 5.000.000 00 and #10.000.000.00 for individuals and corporate organisations, respectively, and shail be subject to the referenced processing fees in (1) above, in addition to enhanced due di igence and further informaton requirements.
“Further to (6) above. you are required to obtain the following information at the minimum and upload same on the CBN portal created for the purpose:
“Valid means of identification of the payee (National ID, intemational Passport, Driver’s License).
Bank Venfication Number (BVN) of the payee.
Notarized customer deciaration of the purpose for the cash withdrawal. Senior management approval for the withdrawal by the Managing Director of the drawee, where applicabie.
“Approval in writing by the MD/CEO of the bank authorising the withdrawal.
Please further note the following:
Monthly retums 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 channets (intemet banking, mobile banking apps, USSD, cards/POS, eNaira, etc.) to conduct thes banking transactions.
Finally, please note that aiding and abetting the circumvention of this policy will attract severe sanctions.
The above regulatory directives teke effect nationwide from January 9, 2023. Please be guided accordingly.“