Various reactions have trailed the recent order by the Central Bank of Nigeria, limiting weekly cash withdrawals by individuals and corporate entities to N100,000 and N500,000, respectively.
Yesterday, the CBN ordered Deposit Money Banks (DMOs) and other financial institutions to ensure that their weekly over-the-counter (OTC) cash withdrawals by individuals and corporate entities do not exceed N100,000 and N500,000, respectively.
The Director of Banking Supervision, Haruna Mustafa, said the regulatory directives will be effective from January 9, 2023.
Meanwhile, the maximum daily withdrawals via the point of sale (PoS) terminal have been fixed at N20,000.
“The maximum cash withdrawal per week via Automatic Teller Machine (ATM) shall be N100,000 subject to a maximum of N20,000 cash withdrawal per day.
“Only denominations of N200 and below shall be loaded into the ATMs,” the bank also said, adding that the new policy is the sequel to the launch of the redesigned N200, N500 and N1,000 notes by President Muhammadu Buhari on November 23, 2022.
Recall that the CBN had recently redesigned three bank notes, which the President had also unveiled. However, the new and existing currencies will remain legal tender and circulate together until January 31, 2023.
The central bank believes that the newly designed notes will reduce the amount of cash in circulation, which will, in turn, decrease the terrible actions of kidnappers who demand ransom, as well as politicians who are known for rigging elections.