*Cash withdrawal above N100,000, N500,000 per week to attract 5%, 10% charges
As a measure towards implementing its Naira redesign policy, the Central Bank of Nigeria, CBN, has announced a revised cash withdrawal policy, directing that going forward, cash withdrawals above N100,000 per week by individuals will attract a 5 percent processing charge while more than N500,000 cash withdrawal per week by corporate organizations attracts a 10 percent fee.
The CBN also stated that individuals are allowed to withdraw maximum cash of N100,000 per week, over the counter, (OTC). For corporate organizations, the maximum cash withdrawal allowed per week(OTC) is N500,000.
The new policy was contained in a letter signed by CBN’s director of banking supervision, Haruna Mustafa, and addressed to all Deposit Money Banks, other financial institutions, primary mortgage banks, and microfinance banks on Monday.
A third-party cheque above N50,000 will not be eligible for payment over the counter, according to the letter cited with the BSD/DIR/PUB/LAB/015/069. ATM withdrawals are limited to N20,000 per day and N100,000 per week.
“The maximum cash withdrawal over the counter (OTC) by individuals and corporate organizations per week shall henceforth be N100,000 and N500,000, respectively.
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“Withdrawals above these limits shall attract processing fees of 5% and 10%, respectively; 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; 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."
The policy stipulates that only N200 and lower denominations will be dispensed by Automated Teller Machines, ATM and that N20,000 is the maximum cash allowed to be withdrawn daily through the PoS terminal except in compelling but legitimate situations.
"Only denominations of N200 and below shall be loaded into the ATMs; The maximum cash withdrawal via point of sale (PoS) terminal shall be N20,000 daily and in compelling circumstances, not exceeding once a month, where cash withdrawals above the prescribed limits are required for legitimate purposes, such cash withdrawals shall not exceed N5,000,000 and 10,000,000 for individuals and corporate organizations,” the letter stated.
The CBN on October 26 announced its plan to redesign 200, 500, and 1000 Naira denominations, giving December 15, 2022, as the date when the new notes will go into circulation, while the use of old naira notes will stop from January 31, 2023.
Economy
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