CBN raises weekly cash withdrawal limits for individuals, corporate organisations

The Central Bank of Nigeria (CBN) has revised its recently introduced cash withdrawal limits.

According to the Apex Bank, the development is based on feedback received from stakeholders and members of the public.

The CBN says the new maximum weekly limit for cash withdrawal now is 500 000 naira for individuals and 5 million naira for corporate
organisations.

In a circular dated December 21 sent to financial institutions and signed by Mr Haruna Mustafa, its Director of Banking Supervision, the apex bank said the decision is based on feedback received from stakeholders.

The statement adds that in compelling circumstances where cash withdrawal is above the limits such requests shall be subjected to a processing fee of three percent for individuals and five percent for corporate organisations third party checks above 100 000 naira shall not be eligible for payment over the counter while the extant limit of 10 million naira on clearing checks still subsists.

In cases where a cash withdrawal above the restrictions is required for legal reasons, the lender reduced the processing fees to 3% and 5% for individuals and corporate entities, respectively, down from 5% and 10% previously.

It was highlighted that if this occurs, the banking institution must collect a valid ID card, the payee’s Bank Verification Number (BVN), both the payee and the payer’s Tax Identification Number (TIN), and written consent from the financial institution’s MD/CEO authorizing the withdrawal.

The CBN also encouraged the use of alternative channels such as internet banking, mobile banking apps, and USSD to mitigate the need to pass through these hurdles.

The CBN also added 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.