The Central Bank of Nigeria (CBN) has revised the cash withdrawal restrictions upward to N500,000 for individual accounts and N5,000,000 for corporate accounts, respectively.
The required percentage charge for withdrawals that exceed the restrictions was also reduced by the apex bank.
According to a statement made by Haruna Mustapha, Director of Banking Supervision at the CBN, this is the case.
According to the CBN, there will be processing fees of 3% and 5% for both private persons and business organizations when a cash withdrawal above the limit is necessary due to compelling circumstances.
According to the News Agency of Nigeria (NAN), the apex bank announced in a statement on December 6 that starting on January 9, 2023, the weekly withdrawal limits for both individuals and corporate organizations would be N100,000 and N500,000, respectively.
However, the move had drawn condemnation from a wide variety of parties, including National Assembly members who pushed CBN Governor Godwin Emefiele to raise the cash withdrawal caps.
Emefiele has also been invited by the House of Representatives to provide additional explanations of the policy to its constituents.
Mustapha noted that despite the current assessment, clients should still be encouraged to perform banking transactions through alternative channels like Internet banking, mobile banking apps, USSD, POS, and eNaira.
He continued by saying that banks and mobile agents were crucial players in the financial system, enabling underserved and rural areas to access financial services.
“They will continue to perform strategic functions in line with existing regulations governing their activities.
“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,” he said.
He issued a warning to all banks and other financial institutions (OFIs) that participating in the new policy’s circumvention will result in harsh penalties.
“The above directives supercede that of Dec. 6, and take effect nationwide from Jan. 9, 2023,” he said.