CBN’s new policy on cash withdrawal limits goes into effect nationwide

Individual and corporate cash withdrawal limitations under CBN’s new policy go into effect today.

The Central Bank of Nigeria (CBN) implemented a new regulation capping weekly cash withdrawals at N5 million for businesses and N500,000 for individuals as of December 6, 2022.

In addition, cheques sent to a third party in excess of N100,000 can no longer be cashed at the counter. From now on, the funds would be deposited directly into their respective bank accounts.

If for whatever reason, you need to withdraw more money than the maximum allowed each day, you will be charged a processing fee of 3% for individuals and 5% for businesses.

Customers who wish to withdraw more than the allowed amounts must provide Payee’s valid government-issued ID, passport, or driver’s license; Payee’s Bank Verification Number (BVN); Payer’s and Payee’s Taxpayer Identification Numbers (TINs).  The withdrawal must also be approved in writing by the bank’s managing director or chief executive officer.

The CBN revealed the new limitations in a circular dated December 6, 2022, and they are a 400% increase from the previous limits of N100,000 and N1 million, respectively.

Yesterday, banks increased sensitization efforts, using several email alerts to the banking public to urge clients to comply with the regulation.

The policy’s execution was nevertheless divisive among specialists and clients.

Other analysts said despite the many hurdles the policy will create for businesses, and the risks associated with e-payment use, the policy also comes with some benefits to the naira and curbing inflation.

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