Banks Comply As Cash Withdrawal Limit Takes Effect

As the cashless policy of the Central Bank of Nigeria (CBN) kicked off yesterday, commercial banks in the country have begun implementation of the policy with customers unable to withdraw more than N500,000 in a week over the counter in the banking hall.

Most deposit money banks had issued emailed notes to their clients, as customers were similarly notified of the policy within the baking halls.

LEADERSHIP can confirm that individuals making cash withdrawals in the banking halls are being informed that they cannot withdraw more than N500,000 within a week with ATM withdrawals limited to N100,000 per day.

The policy, which kicked off on Monday, January 9, 2023, put a limit on how much cash individuals as well as corporates can withdraw from their accounts on a weekly basis.

According to the directive given by the apex bank in December 2022, the maximum weekly limit on cash withdrawals across all channels by individuals was pegged at N500,000 and N5 million respectively with ATM withdrawals pegged at N100,000 daily.

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For withdrawals above the stipulated limits, a processing fee of three per cent and five percent for individuals and corporates respectively would apply with the requesting customer required to provide documents, including, but not limited to notarised declaration for the purpose of cash withdrawal and the bank MD’s written approval for the withdrawal.

Also, third party cheques above N100,000 would not longer be eligible for payment over the counter while extant limits of N10 million on clearing chqeues still subsist.

Meanwhile, as against the directive in the initial circular issued on December 6, 2022, which stated that “only denominations of N200 and below shall be loaded into the ATMs”, a visit by LEADERSHIP to some ATMs in Lagos showed that many are still dispensing N1,000 and N500 notes.

Similarly, most ATMs were dispensing the old naira notes whose lifespan is expected to end by the end of this month, unless the CBN extends the deadline for the old notes.