General news
CBN reduces withdrawal at ATMs, outlets, to ₦20,000 ($27) per day to promote cashless policy
News The Central Bank
The News The Central Bank of Nigeria (CBN) has ordered all Depository Money Banks (DMBS), Payment Service Banks (PSBs) and other financial institutions to limit cash withdrawals. Over-the-counter (OTC) withdrawals by individuals and organizations are now limited to ₦100,000 ($135) and ₦500,000 ($676), respectively. ATM withdrawals have also been limited to ₦20,000 ($27) per day and a total of ₦100,000 per week.
Central Bank of Nigeria
The Central Bank of Nigeria has sent a letter to all Depository Money Banks (DMBS), Payment Service Banks (PSBs) and other financial institutions to limit cash withdrawals to promote its cashless policy.
According to the letter dated Tuesday, November 6, 2022, withdrawals above the limits set by the CBN will incur a 5% processing fee.
According to the new directive,
Over-the-counter (OTC) withdrawals by individuals and organizations are now limited to ₦100,000 ($135) and ₦500,000 ($676), respectively. Third-party checks above ₦50,000 ($67) will not be eligible for cash pickup The maximum weekly withdrawal via ATM is now ₦100,000, while the limit for daily withdrawals is set at ₦20,000. Maximum cash withdrawals at point-of-sale (PoS) terminals have also been lowered to ₦20,000 ($27) per day.
However, CBN said that “in exigent circumstances” where higher cash withdrawals must be made, they cannot exceed £5m ($6,765) and £10m ($13,513) for individuals. and organizations, respectively.
Interestingly, such “compelling situations cannot be more than once a month.
The main bank also urged financial institutions to encourage their customers to use digital channels for their transactions instead of cash.
Haruna Mustafa
The directive signed by Haruna Mustafa, Director of Banking Supervision at CBN, will come into effect from January 9, 2023.
