The Central Bank of Nigeria (CBN) has increased its cash withdrawal limit for individuals and organizations. The new withdrawal amount is now ₦500,000 for individuals and ₦5 million for corporate organizations.
This is coming two weeks after the CBN had stated that it directed Deposit Money Banks (DMOs) and other financial institutions to ensure that weekly over-the-counter (OTC) cash withdrawals by individuals and corporate entities do not exceed ₦100,000 and ₦500,000, respectively.
Speaking on the increment, Haruna Mustafa – CBN Director, Banking Supervision Department, stated that the amendment was based on feedback from stakeholders.
“The CBN recognises the vital role that cash plays in supporting underserved and rural communities and will ensure an inclusive approach as it implements the transition to a more cashless society. All banks and OFIs are to note that aiding and abetting the circumvention of this policy will attract severe sanctions,” he said.
Furthermore, in a statement made public by the CBN, it revealed that any request to exceed the withdrawal limits “shall be subject to a processing fee of 3% and 5% for individuals and corporate organizations, respectively”.
Customers will be required to provide the following documents for vetting and approval by the CBN:
- Valid means of identification of the payee (National ID, International Passport, or Driver’s License).
- Bank Verification Number (BVN) of the payee.
- Tax Identification Number (TIN) of both the payee and the payer.
- Approval in writing by the MD/CEO of the financial institution authorising the withdrawal.
Meanwhile, the CBN said cheques above ₦100,000 will not be eligible for over-the-counter withdrawal. Also, the extant limit of ₦10 million on clearing cheques will subsist.
The new increment and withdrawal would take effect from January 9, 2023.