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Cash withdrawal limits take effect in Nigerian banks

Commercial banks in Nigeria have begun enforcing the Central Bank of Nigeria's (CBN) cashless policy, which went into effect yesterday. Customers can only withdraw up to N500,000 weekly cash from the banking lobby.

Commercial banks in Nigeria have begun enforcing the Central Bank of Nigeria’s (CBN) cashless policy, which went into effect yesterday. Customers can only withdraw up to N500,000 weekly cash from the banking lobby.

Customers were also made aware of the policy in the retail bakeries, and most deposit money banks had already emailed their customers about it.

NewsXtra has confirmed that customers who withdraw cash from ATMs or bank teller windows are limited to N100,000 per day and no more than N500,000 per week.

The new rule, which went into effect on January 9, 2023, restricted people’s and businesses’ weekly cash withdrawal limits.

The apex bank issued a rule capping weekly cash withdrawals at N500,000 and N5 million for individuals in December 2022, with daily ATM withdrawals capping off at N100,000.

Suppose a customer wants to withdraw more money than the bank allows. In that case, they’ll have to pay a processing fee of three per cent (five per cent for individuals and corporations) and provide documentation (such as a notarized declaration stating why the money is being withdrawn and the bank’s managing director’s written approval for the withdrawal) in addition to the usual deposit and withdrawal limits.

In addition, while the current restrictions of N10 million on clearing cheques still subsist, cheques drawn on third parties in excess of N100,000 would no longer be accepted for payment over the counter.

On the other hand, despite the directive in the initial circular published on December 6, 2022, stating that “only denominations of N200 and less shall be inserted into the ATMs,” newsmen visiting certain ATMs in Lagos revealed that many are still dispensing N1,000 and N500 notes.

Most automated teller machines were still distributing old naira notes, which are set to expire at the end of this month unless the CBN extends the deadline for the old notes.

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