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Nigerians react as CBN limits weekly cash withdrawal to N100,000

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Nigerians react as CBN limits weekly cash withdrawal to N100,000

Nigerians have reacted over the new Central Bank Of Nigeria policy on weekly cash withdrawal, noting that the policy is inimical.

A rights activist Comrade Ozobo Austin when contacted said the CBN should ensure a proper network in rural and remote areas before promoting such policies.

According to him, businesses in rural and riverine environments can’t survive with this policy, stating that many local business people do not have bank accounts and prefer cash transactions.

Ozobo maintained that the policy would also affect big corporations whose cash expenditure exceeded N100,00 naira.

“CBN should know that many traders preferred cash transactions, to avoid their profits being deducted for charges for bank or POS withdrawal.

“The central bank must reverse its inimical policy and make market-friendly policies. The policy will affect both INEC during the 2023 elections and not politicians alone.”he added.

The CBN had imposed a limit on cash withdrawals for both individuals and organizations, adding that weak withdrawals would be within N100,000 from the bank counter.

According to CBN, the move was aimed at promoting its cashless policy and it would take effect from January 9, 2023.

This was disclosed in a new memo issued to banks on Tuesday and signed by the Director of Banking Supervision, Haruna .B. Mustafa.

The statement urged that individuals would only be able to withdraw N100,000 per week ( from over-the-counter, Point Sale Machines, or Automated Teller Machines), while the organization can access N500,000 per week.

Banks have also been directed to load only N200 and lower denominations into their ATM.

The statement read, “Further to the launch of the redesigned naira notes by the President, Major General Muhammadu Buhari (retd.), on Wednesday, November 23, 2022, and in line with the cashless policy of the CBN, all deposit money banks and other financial institutions are hereby directed to note and comply with the following:

“1. The maximum cash withdrawal over the counter by individuals and corporate organizations per week shall henceforth be N100,000 and N500,000 respectively. Withdrawals above these limits shall attract processing fees of 5% and 10%, respectively.

“2. Third-party cheques above N50,000 shall not be eligible for payment over the counter, while extant limits of N10,000,000 on clearing cheques still subsist.

“3. The maximum cash withdrawal per week via Automated Teller Machine shall be N100,000 subject to a maximum of N20,000 cash withdrawal per day.

“4. Only denominations of N200 and below shall be loaded into the ATMs.
“5. The maximum cash withdrawal via the point-of-sale terminal shall be N20,000 daily.

“6. In compelling circumstances, not exceeding once a month, where cash withdrawals above the prescribed limits are required for legitimate purposes, such cash withdrawals shall not exceed N5,000,000.00 and N10,000,000.00 for individuals and corporate organizations, respectively, and shall be subject to the referenced processing fees in (1) above, in addition to enhanced due diligence and further information requirements.

“Further to (6) above, you are required to obtain the following information at the minimum and upload the same on the CBN portal created for the purpose:

“a. Valid means of identification of the payee (National Identity Card, International Passport, Drivers License.). b. Bank Verification Number of the payee. c. Notarised customer declaration of the purpose of the cash withdrawal. d. Senior management approval for the withdrawal by the Managing Director of the drawee, where applicable. e. Approval in writing by the MD/CEO of the bank authorizing the withdrawal.

“Please further note the following:
i. Monthly returns on cash withdrawal transactions above the specified limits should be rendered to the Banking Supervision Department.
ii. Compliance with extant AMUCFT regulations relating to the KYC, ongoing customer due diligence and suspicious transaction reporting, etc., is required in all circumstances.
iii. Customers should be encouraged to use alternative channels (internet banking, mobile banking apps, USSD, cards/POS. eNaira, etc.) to conduct their banking transactions.

“Finally, please note that aiding and abetting the circumvention of this policy will attract severe sanctions.

“The above regulatory directives take effect nationwide from January 9, 2023. Please be guided accordingly.”

However, Mr. Stephen Colbert said the CBN policy was ill-conceived and should be discouraged.

Colbert who said the policy would increase hardship in the country advised CBN to have to rethink the new cash policy of the country.

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