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The Central Bank of Nigeria (CBN) changed its mind about the maximum cash withdrawal thresholds.
The CBN announced late on Wednesday that it had raised the maximum weekly limit for cash withdrawals through all channels in a new circular distributed to all banks.
Individuals and businesses can now withdraw between N500,000 and N5,000,000 in cash.
Haruna Mustafa, Director of Banking Supervision, signed the circular.
“In compelling circumstances where cash withdrawal above the limits is required for legitimate purposes, such requests shall be subject to a processing fee of three percent for individuals and five percent for corporate organizations, respectively,” the law states in part.
The CBN ordered that third-party checks over N100,000 cannot be paid over the counter as long as the existing limit of N10 million on clearing checks is in effect.
The Banking Supervision, Other Financial Institutions Supervision, and Payments System Management Departments, as appropriate, should receive monthly returns on cash withdrawal transactions that exceed the specified limits, according to the CBN.
It urged bank customers to conduct their financial transactions through alternative channels, such as eNaira, mobile banking apps, USSD, cards/POS, and internet banking. In order to provide access to financial services in underserved and rural communities, CBN acknowledged that “bank and Mobile Money Agents are important participants in the financial system.”
According to the statement, “They will continue to carry out these strategic functions in accordance with the rules currently governing their activities.”
The Central Bank of Nigeria (CBN) declared that it understands “the crucial 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.” Beginning on January 9, the new regulation will be followed nationwide.