Fails to increase cash withdrawals via ATMs and POS

The Central Bank of Nigeria (CBN) has failed to raise the maximum weekly limit for cash withdrawals from ATMs and Point of Sale terminals (POS).
Customers can only withdraw N20,000 per day from their accounts through POS operators or ATMs, according to the apex bank.

According to Track News, the CBN has increased the withdrawal limit for individuals and corporate organizations to N500,000 and N5 million, respectively.

According to the apex bank, this means that the amount that can be cashed over the counter using third-party cheques is N100,000 per day, for a total of N500,000 per week.

Haruna Mustafa, CBN’s Director of Banking Supervision, announced this in a new circular dated December 21, 2022, and distributed to all deposit money banks, other financial institutions, banking agents, and mobile money operators.

According to the apex bank, the new directives will take effect on January 9, 2023, and will supersede those in effect on December 6, 2022.

“Following our circular BSD/DIR/PUB/LAB/015/069 dated December 6, 2022, on the above subject, and based on feedback from stakeholders, the Central Bank of Nigeria (CBN) hereby makes the following reviews:”

“The maximum weekly limit for cash withdrawal across all channels by individuals and corporate organisations shall be N500,000 and N5 million respectively. In compelling circumstances where a cash withdrawal in excess of the limits is required for legitimate purposes, such requests shall be subject to a processing fee of 3% for individuals and 5% for corporate organizations, respectively.”

“In order to exceed the limit, financial institutions must obtain, at a minimum, the following information from customers and upload it to the CBN portal created for the purpose: Valid means of identification for the payee (National ID, International Passport, or Driver’s License), the payee’s Bank Verification Number (BVN), the payee’s and the payer’s Tax Identification Number (TIN), and written approval from the MD/CEO of the financial institution authorizing the withdrawal.

“Third-party cheques in excess of N100,000 shall be ineligible for payment over the counter, while the existing limit of N10 million on clearing cheques remains in effect.”

“Banks are to render monthly returns on cash withdrawal transactions above the specified limits to the Banking Supervision, Other Financial Institutions Supervision, and Payments System Management Departments as applicable.

“They are also expected to comply with existing AML/CFT regulations relating to KYC, ongoing customer due diligence, currency and suspicious transaction reporting, and other requirements that are mandatory in all circumstances.”