Banks Suspend Cash Transactions via Naira Credit, Prepaid Cards as CBN’s Domestic Card Scheme Kicks Off
- 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
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 send messages to customers
For instance, Stanbic IBTC in a message to one of its customers stated:
PAY ATTENTION: Share your outstanding story with our editors! Please reach us through firstname.lastname@example.org!
“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.
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.