Central Bank Reverses Maximum Cash Withdrawal Policy

The Central Bank of Nigeria (CBN) has reversed its decision on maximum cash withdrawal limits.

In a new circular issued to all banks late Wednesday, the CBN said it increased the maximum weekly limit for cash withdrawal across all channels.

Going forward, individuals and corporate organisations can now withdraw N500,000 and N5,000,000 cash.

The circular was signed by Haruna Mustafa, Director of Banking Supervision.

It reads in part: “In compelling circumstances where cash withdrawal above the limits is required for legitimate purposes, such requests shall be subject to a processing fee of three per cent and five per cent for individuals and corporate organisations, respectively.”

In the case of third-party cheques above N100,000, the CBN directed that it cannot be eligible for payment over the counter, while the extant limit of N10 million on clearing cheques still subsists.

“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,” the CBN said.

It urged bank customers to use alternative channels (internet banking, mobile banking apps, USSD, cards/POS, eNaira, etc.) to conduct their banking transactions.

CBN acknowledged that “bank 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,” it said.

The CBN said it recognises “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”.

The new directive takes effect nationwide from January 9.