Following a review of its policy on cash withdrawal limitations, the Central Bank of Nigeria (CBN) has increased the weekly withdrawal restrictions for both individuals and corporate entities to N500,000 and N5,000,000, respectively.
The apex bank stated in a circular that the review was essential as a result of comments it received from stakeholders.
The CBN also made note of its understanding of the crucial position currency plays in the Nigerian economy, particularly in rural areas where almost all transactions take place in cash.
The CBN recognises the vital role that cash plays in supporting underserved and rural communities and will ensure an inclusive approach as it implements the transition to a more cash-less society. All banks and OFIs are to note that aiding and abetting the circumvention of this policy will attract severe sanctions,” part of the circular by the CBN said.
It should be noted that the review occurs just two weeks after the policy was released. According to an earlier report from NewzUrban, the policy would go into force on January 9, 2023.
Further information about the reviews According to the assessment, the CBN provided allowances for people and business organizations to withdraw more money than what was allowed under certain situations. A processing fee of 3% and 5% for private people and corporate organizations, respectively, will be charged for any withdrawal request that exceeds the permitted limitations.
Additionally, financial institutions are required to get the following papers from their clients and submit them for approval to the CBN before processing any cash withdrawal request that exceeds the established limits:
- Valid means of identification of the payee (National ID, International Passport, or Driver’s License).
- Bank Verification Number (BVN) of the payee.
- Tax Identification Number (TIN) of both the payee and the payer.
- Approval in writing by the MD/CEO of the financial institution authorising the withdrawal.
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