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Banks Suspend Cash Transactions via Naira Credit, Prepaid Cards as CBN’s Domestic Card Scheme Kicks Off
Economy

Banks Suspend Cash Transactions via Naira Credit, Prepaid Cards as CBN’s Domestic Card Scheme Kicks Off

by  Dave Ibemere 2 min read
  • Nigerian banks have announced the suspension of transactions using naira credit cards or prepaid cards
  • This is in line with the Central Bank of Nigeria's cash withdrawal limit policy that places restrictions on the use of cash
  • Bank customers have received messages informing them of the new development

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Commercial Banks in the country have suspended further cash disbursement via customers’ naira Credit and prepaid cards.

This is in compliance with the Central Bank of Nigeria’s (CBN) currency redesign cash withdrawal policy that limited withdrawals across all channels.

ThisDay reports that banks have informed customers through text messages that these channels can no longer be used to access cash for the time being.

Banks suspends naira debit withdrawal
Banks suspend naira credit card withdrawals Photo credit: dailytrust
Source: Getty Images

Banks send messages to customers

For instance, Stanbic IBTC in a message to one of its customers stated:

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“Following the naira redesign policy limiting local cash withdrawals across all channels to N500,000 weekly, please be informed that cash withdrawal on your naira credit and prepaid card will not be available for now.”

It is unclear how many banks have made these adjustments, and attempts to contact some of the banks' communication departments for clarification were unsuccessful.

CBN cash withdrawal policy

Legit.ng in an earlier report revealed that the CBN announced that effective January 9, 2023, individuals and corporate entities can withdraw a maximum of N500,000 and N5 million respectively

The CBN also stated that in compelling circumstances where cash withdrawal above the limit is required for legitimate purposes, such request shall be subject to a processing fee of 3 percent and 5 percent for individuals and corporate organizations respectively.

CBN credit card kicks off

Also Legit.ng has reported that the Central Bank of Nigeria has has introduced a national domestic card scheme.

Read also

New naira notes: Banks to pay N1m daily fine as CBN steps up effort to ensure distribution

The card is expected to compete with other debit cards, including Mastercard, Visa, and Verve cards operating in Nigeria.

10 things to know as CBN cash withdrawal policy kicks off

Meanwhile, in another report, commercial banks in the country have started the implementation of the CBN cash withdrawal policy

The policy goal is to increase the number of transactions conducted electronically while reducing the amount of physical cash that is used in the economy

Here are the ten things to know about the cash withdrawal policy and how it affects a bank customer.

Source: Legit.ng

Authors:
Dave Ibemere avatar

Dave Ibemere (Senior Business Editor) Dave Ibemere is a senior business editor at Legit.ng. He is a financial journalist with over a decade of experience in print and online media. He also holds a Master's degree from the University of Lagos. He is a member of the African Academy for Open-Source Investigation (AAOSI), the Nigerian Institute of Public Relations and other media think tank groups. He previously worked with The Guardian, BusinessDay, and headed the business desk at Ripples Nigeria. Email: dave.ibemere@corp.legit.ng.

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