Naira redesign: CBN sets cash withdrawal limits

The Central Bank of Nigeria (CBN) has announced a revision of the weekly cash withdrawal limit to N100,000 for individuals and N500,000 for corporate organizations.

According to a memo by Haruna Mustapha, the CBN's Director of Banking Supervision, this is the sequel to the official launch of the redesigned naira notes by President Muhammadu Buhari on October 23.

Mustapha said the measure was also in line with the cashless policy of the apex bank.

He urged all Deposit Money Banks (DMBs) and Other Financial Institutions (OFIs) to comply with the new measure.

"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 five percent and 10 percent, respectively."

"Third-party cheques above N50,000 shall not be eligible for payment over the counter, while existing limits of N10 million on clearing checks still subsist."

"The maximum cash withdrawal per week via an automated teller machine (ATM) shall be N100,000, subject to a maximum of N20,000 cash withdrawal per day."

"Only notes of N200 and below shall be loaded into the ATMs," he said.

The director added that the maximum cash withdrawal via a Point of Sale (PoS) terminal was also N20,000 daily.

He said in compelling circumstances, not exceeding once a month, where cash withdrawals above the prescribed limits were required for legitimate purposes, the apex bank could give a concession.

"Such cash withdrawals shall not exceed five million Naira and 10 million Naira for individuals and corporate organizations, respectively, and shall be subject to the referenced processing fees," he said.

Mustapha said 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 is required in all circumstances."

"Customers should be encouraged to use alternative channels, like Internet banking, mobile banking apps, USSD, cards/POS, and eNaira, to conduct their banking transactions," he said.

He said the new directives would take effect on January 9, 2023.