Commercial banks in the country have started the implementation of the CBN cash withdrawal policy
Its goal is to increase the number of transactions conducted electronically while reducing the amount of physical cash that is used in the economy
The cash withdrawal policy of the Central Bank of Nigeria has officially kicked off today, Monday, January 9, 2023.
The Policy which was first announced in December 2022, limits the amount of cash Nigerians can withdraw over the counter from banks and other financial institutions.
When the cash withdrawal policy was first published, it sparked a whirlwind of controversy, prompting the CBN to change some of its limitations.
Here are the 10 things to know about the cash withdrawal policy
Individuals’ withdrawal over the counter is limited maximum to N500,000 per week
Corporate organizations are only allowed to withdraw cash of N5 million maximum weekly
Third-party cheques above N100,000 will not be eligible for payment over the counter.
The existing limit of N10 million on clearing cheques still subsists.
Once a month, the CBN says it will allow individuals and organisations to make cash withdrawals above the prescribed limits if it is required for legitimate purposes.
Individuals will be required to pay a processing fee of 3% for cash withdrawals above the prescribed limits
While organizations will pay 5% should they need to withdraw cash above the limit prescribed
Banks are required to do due diligence and seek documentation such as the payee’s bank verification number (BVN) and a legitimate means of identification if a customers chose to withdrawal above the prescribe limits
Bank managers approve cash withdrawals above the prescribed limits for individuals and corporate
Banks will report transactions that are adjudged to be suspicious to CBN supervision team
Source: Legit.ng
