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Reasons why CBN limits cash withdrawals to N100,000 weekly, N20,000 daily through POS

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 limitation of cash withdrawals to N100,000 weekly, N20,000 daily through POS in Nigeria 

Reasons why CBN limits cash withdrawals to N100,000 weekly, N20,000 daily through POS


The Central Bank of Nigeria, CBN, has announced new cash withdrawal limits for individuals and corporate organizations effective January 9, 2023.

According to a memorandum to banks issued on the day and signed by the Director of Banking Supervision, Haruna Mustafa, the apex bank pegged N100,000 weekly for individuals from counter/POS and N500,000 for corporate organisations.

The new policy also capped individual Point of Service, POS, at N20,000 per day.

The circular read: “Following the launch of the redesigned Naira notes by the President of the Federal Republic of Nigeria on Wednesday, November 23, 2022 and in line with the cashless policy of the CBN, all Depository Money Banks (DMBs) and Other Financial Institutions (OFls) are hereby directed to take note and comply following:

“The maximum over-the-counter (OTC) cash withdrawal by individuals and corporate organizations per week will henceforth be N100,000 and N500,000 respectively.Withdrawals above these limits are subject to processing charges of 5% and 10% respectively.

“Third party checks above N50,000 are not eligible for over the counter payment while the existing N10,000,000 clearing limits still remain.

The circular further stated that the maximum weekly cash withdrawal through the ATM is N100,000 while the maximum cash withdrawal is N20,000 per day.

Also, only denominations of N200 and below are deposited in the ATMs.

The maximum cash withdrawal through point of sale, POS, terminal will be N20,000 per day as further specified in the circular.

The circular further stated that "in exigent circumstances not exceeding once a month, where cash withdrawals above the prescribed limits are required for legitimate purposes, such cash withdrawals shall not exceed and for individuals and corporate bodies, respectively, and shall be subject to the processing charges specified in point (I) above, except for increased due diligence and requests for additional information.'

The CBN further directed the banks to obtain as a minimum the following information and upload it on the CBN portal created for the purpose. They are:

"A valid method of identification of the beneficiary (citizen card, international passport, driver's license), bank verification number (BVN) of the beneficiary, notarized declaration of the customer on the purpose of cash withdrawal, approval of the senior management with the withdrawal by the CEO and written consent of the MD/CEO of the bank, which allowed the selection," he added.

Reasons why CBN limits cash withdrawals to N100,000 weekly, N20,000 daily through POS

The truth is that, when something like this happen, everybody believes that the federal government is fighting corruption in the country. So the reason why CBN limits cash withdrawals to N100,000 weekly, N20,000 daily through POS is to fight the high level of corruption in Nigeria
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