The Central Bank of Nigeria (CBN) has limited the maximum cash withdrawal an individual can withdraw from Automated Teller Machine (ATM) to 100,000 per week.
This is against the N100,000 daily withdrawal from ATM.
The regulatory directives take effect nationwide from January 9, 2023.
A memo from the CBN on Tuesday said daily maximum withdrawal from ATM would now be N20,000.
The bank said this was in line with the cashless policy of the federal government.
According to the memo, further to the launch of the redesigned naira notes by the President, Major General Muhammadu Buhari (retd.), on Wednesday, November 23, 2022, and in line with the cashless policy of the CBN, all deposit money banks and other financial institutions are hereby directed to note and comply with the new move.
“The maximum cash withdrawal over the counter by individuals and corporate organisations per week shall henceforth be N100,000 and N500,000 respectively. Withdrawals above these limits shall attract processing fees of 5% and 10%, respectively.
“Third-party cheques above N50,000 shall not be eligible for payment over the counter, while extant limits of N10,000,000 on clearing cheques still subsist.
“The maximum cash withdrawal per week via Automated Teller Machine shall be N100,000 subject to a maximum of N20,000 cash withdrawal per day,” the memo said.
The CBN added that only denominations of N200 and below shall be loaded into the ATMs, saying that the maximum cash withdrawal via the point of sale terminal shall be N20,000 daily.
The apex bank stated that in compelling circumstances, not exceeding once a month, where cash withdrawals above the prescribed limits would be required for legitimate purposes, such cash withdrawals shall not exceed N5,000,000.00 and N10,000,000.00 for individuals and corporate organisations, respectively, and shall be subject to the referenced processing fees of 5% and 10% respectively, in addition to enhanced due diligence and further information requirements.
The CBN added that banks were required to obtain the following information at the minimum and upload same on its portal created for the purpose: valid means of identification of the payee (National Identity Card, International Passport, Drivers License.), Bank Verification Number of the payee, Notarised customer declaration of the purpose of the cash withdrawal, Senior management approval for the withdrawal by the Managing Director of the drawee, where applicable and approval in writing by the MD/CEO of the bank authorising the withdrawal.
The apex bank added that banks should note that monthly returns on cash withdrawal transactions above the specified limits should be rendered to the Banking Supervision Department, saying that compliance with extant AMUCFT regulations relating to the KYC, ongoing customer due diligence and suspicious transaction reporting etc., was required in all circumstances.
It said customers should be encouraged to use alternative channels (internet banking, mobile banking apps, USSD, cards/POS. eNaira, etc.) to conduct their banking transactions.
The CBN warned banks that aiding and abetting the circumvention of this policy would attract severe sanctions.
credit: PM News