CBN releases policy on Naira redesign and cash withdrawal limits

The Central Bank of Nigeria (CBN) has released the country’s currency redesign policy revised cash withdrawal limits, saying the new policy is further to the launch of the redesigned Naira notes by the President of the Federal Republic of Nigeria last month.

In a letter sent to Deposit Money Banks (DMBS) and Other Financial institutions (Payment Service Banks (PSBs) Primary Mortgage Banks (PMBs) and Microfinance Banks (MFBs), the apex bank explained that the new policy is in line with its Cashless policy.

The regulatory directives take effect nationwide from January 9, 2023, with the CBN mandating all deposit money banks (DMBs) and other financial institutions (OFls) are hereby directed to note and comply with the following:

1. 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 59% and 10%, respectively.

2. 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.

3. The maximum cash withdrawal per week via Automated Teller Machine (ATM) shall be N100.000 subject to a maximum of N20.000 cash withdrawal per day. Only denominations of N200 and below shall be loaded into the ATMs.

6. The maximum cash withdrawal via the point of sale (PoS) terminal shall be 20,000 daily.
7. In compelling circumstances, not exceeding once a month, where cash withdrawals above the prescribed limits is 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 in (1) above, in addition to enhanced due diligence and further information requirements.

Also, in the letter signed by Haruna Mustafa, Director of Banking Supervision, the apex bank added that further to the (6) above, all the financial institutions are required to obtain the following information at the minimum and upload the same on the CBN portal created for the purpose.

1. Valid means of identification of the payee (National ID, International Passport, Driver’s License)
2. Bank Verification Number (BVN) of the payee.
3. Notarized customer declaration of the purpose for the cash withdrawal.
4. Senior management approval for the withdrawal by the Managing Director of the drawee, where applicable.