Banks Begin Enforcement of Cash Limits

Over 20 Deposit Money Banks on Monday began the implementation of the Central Bank of Nigeria’s new cash withdrawal limit policy across the country with bank customers expressing anger over the new rule.

The Governor of the CBN, Godwin Emefiele, had on December 21, 2022, bowed to pressure and revised the bank’s earlier cash withdrawal limits.

The CBN reviewed upwards the maximum weekly limit for cash withdrawal across all channels by individuals and corporate organisations to N500,000 and N5m respectively.

The CBN attributed the development to the feedback it got from stakeholders.

For transactions above the withdrawal limits, financial institutions are required to get details of the customers and upload the same on the CBN portal created for the purpose.

In the earlier circular it issued on December 6, 2022, the CBN had said that with effect from January 9, 2023, the maximum over-the-counter cash withdrawal limit by individuals and corporate organisations per week, would be N100,000 and N500,000 respectively, adding that withdrawals above these limits would attract processing fees of five per cent and 10 per cent respectively.

It further stated that the maximum cash withdrawal per week via Automated Teller Machines from January 9, would be N100,000 subject to a maximum of N20,000 cash withdrawal per day.

The apex bank also directed banks to load only N200 and lower denominations into their ATMs.

Following the previous directive, many stakeholders kicked against it. The Association of Mobile Money and Bank Agents of Nigeria said that point-of-sale operators would protest as the policy was targeted at killing their source of livelihood.

However, the reviewed cash limits, which took effect on Monday faced severe opposition from bank customers who accused the central bank of not being sensitive to the plight of cash-based businesses.