2023: CBN LIMITS CASH WITHDRAWALS BY INDIVIDUALS AND ORGANIZATIONS

The Central Bank of Nigeria has imposed a limit on cash withdrawals by individuals and organizations effective January 9, 2023.

In a memo issued on Tuesday, signed by the director of banking supervision, Haruna Mustafa, the major bank ordered all banks and other financial institutions to ensure that over-the-counter cash withdrawals by individuals and businesses do not exceed N100,000 and N500,000 respectively per week.

The decision comes after the CBN began distributing its newly developed banknotes. The bank said the redesign of the banknotes would help curb inflation, counterfeiting and corruption.

In the new development, CBN has indicated that only N200 and lower denominations should be loaded into bank ATMs. "Following the launch of the redesigned naira banknotes by the President of the Federal Republic of Nigeria on Wednesday 23 November 2022, and in accordance with the CBN's cashless policy, all depository banks and other financial institutions are urged to take note and do the following:

“The maximum over-the-counter cash withdrawals by individuals and corporate organizations per week will be N100,000 and N500,000 respectively. Withdrawals above these limits will incur a processing fee of 5% and 10% respectively.

"Third-party checks over N50,000 are ineligible for payout over the counter, while the existing limits of N10,000,000 for clearing checks still apply," it read.

The bank also said that the maximum cash withdrawals per week via an ATM should be N100,000, with a maximum of N20,000 cash withdrawals per day.