Commercial Banks to Increase Cash Withdrawal Limits as Queues Reduce

Commercial Banks to Increase Cash Withdrawal Limits as Queues Reduce

  • Commercial banks in Nigeria are making extra moves outside the directives of the CBN
  • They are poised to increase cash withdrawal limits above the apex bank's recommended level
  • The development comes after the CBN released billions of old naira notes into circulation to end queues across the country

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Bank sources say that commercial banks are poised to increase their cash withdrawal limits from the current N20,000 to N50,000 and N80,000 to N100,000.

The move, they say, is to decongest queues at ATMs and inside banking halls in some cities.

Banks, cash withdrawal limits, CBN
Bank customers queue to make withdrawals. Credit: PATRICK MEINHARDT / Contributor
Source: Getty Images

CBN releases billions of old naira notes into circulation

The Central Bank of Nigeria (CBN), on Friday, March 24, 2023, asked commercial banks to start operations on the weekends to clear the backlog of cash requests and ease the cash crunch in the country.

Read also

New naira notes decline in circulation as banks load ATMs with cash, CBN may enforce use of eNaira

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The development comes after the apex bank started releasing billions of old naira notes mopped up during the naira redesign policy to the banks.

Findings reveal that most banks currently pay between N20,000 and N50,000 over-the-counter and at ATMs, a Punch report says.

Bank officials hint that they plan to increase the withdrawal limits to improve cash circulation and end queues in banking halls and ATMs.

Several banks across Nigerian cities witnessed an upsurge of customers on their premises on Monday, March 27, 2023, some of who sought to make cash withdrawals.

However, a bank official at one of the new-generation banks told Legit.ng that most customers at bank branches came to resolve one complaint or another.

He stated that most complaints are related to incomplete bank transactions, especially interbank transfers.

“Sixty per cent of the people are not here for cash. They are here to resolve incomplete bank transactions, especially bank transfers that did not deliver to the destination accounts,” he said.

Read also

CBN’s new move crashes PoS charges as naira scarcity reduces

Nigerians hail CBN, commercial banks

Many Nigerians have commended the CBN and banks as the cash crisis seems to have eased up due to the availability of naira notes.

According to them, there has been a remarkable difference in cash in circulation in the last few days.

The recent development has also crashed Point of Sale (PoS) charges.

Findings reveal that PoS operators now charge between 6% to 10% as against the 30% they demanded at the height of the naira scarcity.

New naira notes decline in circulation as banks load ATMs with cash, CBN may enforce use of eNaira

Legit.ng earlier reported that Nigerians have witnessed, with dismay, how the newly redesigned new naira notes have reduced in circulation, leaving Nigerians to grapple with the old ones that are mostly torn and worn out.

The development comes as the Central Bank of Nigeria (CBN) directed the commercial banks to open on Saturdays and Sundays.

The Guardian reports that the CBN has ceased the distribution of new naira notes to commercial banks, causing their scarcity.

Source: Legit.ng

Authors:
Pascal Oparada avatar

Pascal Oparada (Business editor) Pascal Oparada is a Mass Communications Graduate from Yaba College of Technology with over 10 years of experience in journalism. He has worked in reputable media organizations such as Daily Independent, TheNiche newspaper, and the Nigerian Xpress. He is a 2018 PwC Media Excellence Award winner. Email:pascal.oparada@corp.legit.ng

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