Sequel to the introduction of the new Naira notes and in line with the promotion of a cashless policy in Nigeria’s economy, the Central Bank has revised the limits on cash withdrawals to ₦20,000 daily limit for individuals and ₦100,000 for corporate organizations respectively. Although the development has generated more criticism than commendation as to whether the new withdrawal limit guidelines factor the weekend (Saturday and Sunday) withdrawals for the weekly withdrawal limits stipulated.
Despite the fact that the CBN is insisting that These withdrawal limits will take effect from January 9, 2023, the National Assembly has on December 13th, 2022, asked the Apex bank to halt its activities towards implementation of the new withdrawal limits sighting the “public Outcry on the policy”. The hollowed chamber also hastens up its committee on finance to intensify its oversight function upon the Apex bank for the benefit of the ordinary people.
Regardless of the rancorous expressions from various parties, should the CBN has its way to implement this monetary policy, these are some important pieces of information you should know about this new cash withdrawal limit to avoid foul play
• The maximum limit of cash withdrawable by individuals and corporation organizations
The maximum weekly cash withdrawal by individuals and corporate organizations is N100,000 and N500,000, respectively. That said, Withdrawals above these limits will attract a processing fee of 5% and 10% for individuals and corporate organizations, respectively.
• The maximum limit to issue third-party cheques
The third-party cheques over the counter would be ₦50,000.00 and below while clearing the limit of N10,000,000.00 through clearing for third-party account settlement would remain.
• The maximum limit on cash withdrawable via ATMs
The maximum limit for cash withdrawals via ATMs is ₦100,000.00 per week or N20,000.00 per day. Only N200 notes and below would be dispensed from the ATMs.
• The maximum limit of cash withdrawable via the POS terminals
You can withdraw cash at a maximum limit of N20,000.00 via POS terminals per day.
• The conditions to withdraw above these cash limits
Cash withdrawals beyond the above-stipulated limits are allowed only in compelling circumstances which must be legitimate, not exceeding ₦5,000,000 for individuals and ₦10,000,00 for corporate organizations once a month.
In this type of circumstance, the processing bank shall apply a processing fee of 5% and 10% for individuals and corporate organizations respectively, and in most cases, the processing bank would require these documents to process:
- Valid means of identification
- Notarized declaration of the purpose for the cash withdrawal.
- Written approval from the Organization’s Managing director of the drawee
The approval of the such transaction will be subject to the bank’s approval having done their internal processing.