CBN Reduces Over-The-Counter(OTC) Withdrawals Per Week To N100k For Individuals and N500k For Companies

CBN Reduces Over-The-Counter(OTC) Withdrawals Per Week To N100k For Individuals and N500k For Companies

The Central Bank of Nigeria (CBN) has limited cash withdrawal per week for individuals to N100,000, from Over-The-Counter(OTC), Point-Of-Sale(POS) and Automated Teller Machines(ATMs), while companies can access upto N500,000 per week. Adding that withdrawals above these fixed limits shall attract processing fee of 5% for individuals and 10% for companies.

This information was contained in a memo issued on Tuesday, December 6, 2022 by the Apex bank, signed by the Director of Banking Supervision, Mr. Haruna .B. Mustafa. 

According to the content of the memo, the Point of Sale (P0S) individual withdrawal has been limited to N20,000 per day.

All the banks in Nigeria have also been directed to load only N200 and lower denominations into their Automated Teller Machines (ATMs). And the maximum cash withdrawal per week will be N100,000 with a maximum of N20,000 cash withdrawal daily.

"The above regulatory directives will take effect from January 9, 2023," CBN said.

The memo reads;

"Further to the launch of the redesigned naira notes by the President of the Federal Republic of Nigeria, Muhammadu Buhari, on Wednesday, November 23, 2022, and in line with the cashless policy of the CBN, all deposit money banks(DMBs) and other financial institutions(OFIs) are hereby directed to note and comply with the following:

“1. The maximum cash withdrawal over the counter(OTC) 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.

“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.

“4. Only denominations of N200 and below shall be loaded into the ATMs.

“5. The maximum cash withdrawal via Point of Sale(POS) terminal shall be N20,000 daily.”

"6.  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 in (1) above, in addition to enhanced due diligence and further information requirements.

"Further to (6) above, Banks are required to obtain the following information at the minimum and upload same on the CBN portal created for the purpose:

1. Valid means of identification of the payee (National Identity Card, International Passport, Drivers License.).
2. Bank Verification Number of the payee.
3. Notarised customer declaration of the purpose of the cash withdrawal. 
4. Senior management approval for the withdrawal by the Managing Director of the drawee, where applicable. 
5. Approval in writing by the MD/CEO of the bank authorising the withdrawal.

"Please further note the following: 

i. Monthly returns on cash withdrawal transactions above the specified limits should be rendered to the Banking Supervision Department.

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

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

“Finally, please note that aiding and abetting the circumvention of this policy will attract severe sanctions.

“The above regulatory directives take effect nationwide from January 9, 2023. Please be guided accordingly.” 

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