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CBN Amends Cash Withdrawal CBN Boosts Weekly Limits And Modifies Cash Withdrawal Rules

Following public criticism over the policy, the National Assembly ordered the bank to significantly increase the withdrawal restrictions, which led to the upward review.

The maximum amount that people and organizations may withdraw in cash has been increased by the Central Bank of Nigeria.

The bank had on December 6 announced a new policy limiting over-the-counter cash withdrawals by individuals and business entities to N100,000 and N500,000, respectively, every week, before the introduction of the redesigned naira notes.

Following public criticism over the policy, the National Assembly ordered the bank to significantly increase the withdrawal restrictions, which led to the upward review.

The new rule, which was announced in a letter to all banks on Wednesday and signed by Haruna Mustafa, the director of banking supervision, now permits individuals to withdraw up to N500,000 weekly and organizations to take N5 million weekly. The initial cap for individuals was N100,000.

If there are compelling reasons to withdraw more money than is necessary for legal purposes, there will be a processing fee of 3 percent for private persons and 5 percent for corporate entities.

And in these situations, the financial institutions are required to at the very least collect certain information from the consumer and upload it to the CBN portal established for the purpose.

A legitimate form of identification for the payee (such as a national ID, an international passport, or a driver’s license), the payee’s bank verification number (BVN), the payer and the payee’s combined tax identification number (TIN), and a written approval from the MD or CEO of the financial institution authorizing the withdrawal are all included in the information.

Additionally, it stated that the current clearing cheque limit of N10 million would continue to apply and that third-party checks over N100,000 would not be accepted for payment over the counter.

The Banking Supervision, Other Financial Institutions Supervision, and Payments System Management Departments, where appropriate, should receive monthly returns on cash withdrawal transactions that are beyond the outlined restrictions.

It is always necessary to abide by the current AML/CFT requirements on KYC, ongoing customer due diligence, currency and suspicious transaction reporting, etc.

Customers should be encouraged to undertake their financial transactions through alternate channels, including online banking, mobile banking apps, USSD, cards/POS, and eNaira, according to CBN.

Banks and mobile money providers, according to the report, are significant players in the financial system that make financial services accessible to underprivileged and rural regions.

They will continue to carry out these strategic tasks following the rules already in place that control their operations.

“The CBN will ensure an inclusive approach as it conducts the shift to a more cashless society,” the statement reads. “The CBN understands the critical role that cash plays in assisting underprivileged and rural populations.”, raises weekly limits

The Central Bank of Nigeria has reviewed upward the limit on cash withdrawals made by individuals and organisations.

Ahead of the distribution of the redesigned naira notes, the bank had on December 6 announced a new policy limiting over-the-counter cash withdrawals by individuals and corporate entities to N100, 000 and N500, 000, respectively, per week.

The upward review comes after the National Assembly asked the bank to considerably adjust the withdrawal limits in response to public outcry on the policy.

The new directive which was communicated through a letter addressed to all banks, and signed on Wednesday by the Director of Banking Supervision, Haruna Mustafa, now allows individuals to withdraw up to N500,000 weekly and organisations, N5 million weekly. The initial limit was N100,000 for individuals.

In the event of compelling circumstances where cash withdrawal exceeds the limits required for legitimate purposes, such requests will attract a processing fee of 3 percent and 5 percent for individuals and corporate organizations, respectively.

And in such cases, the financial institutions are directed to obtain some information from the customer, at the minimum, and upload the same on the CBN portal created for the purpose.

The information includes a 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; and the approval in writing by the MD/CEO of the financial institution authorising the withdrawal.

It also said third-party cheques above N100,000 shall not be eligible for payment over the counter, while the extant limit of N10 million on clearing cheques still subsist.

“Monthly returns on cash withdrawal transactions above the specified limits should be rendered to the Banking Supervision, Other Financial Institutions Supervision and Payments System Management Departments as applicable.

“Compliance with extant AML/CFT regulations relating to KYC, ongoing customer due diligence, currency and suspicious transaction reporting, etc. is mandatory in all circumstances.

“Customers should be encouraged to use alternative channels (internet banking, mobile banking apps, USSD, cards/POS, eNaira, etc.) to conduct their banking transactions,” CBN said.

It said banks and mobile money agents are important participants in the financial system, enabling access to financial services in underserved and rural communities.

“They will continue to perform these strategic functions, in line with existing regulations governing their activities.

“The CBN recognizes 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 cashless society.”

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