CBN Cash Withdrawal Policy Begins… Here Are Ten Things to Know To Avoid Banks Issues

CBN Cash Withdrawal Policy Begins… Here Are Ten Things to Know To Avoid Banks Issues

  • Commercial banks in the country have started the implementation of the CBN cash withdrawal policy
  • Its 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

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The cash withdrawal policy of the Central Bank of Nigeria has officially kicked off today, Monday, January 9, 2023.

The Policy which was first announced in December 2022, limits the amount of cash Nigerians can withdraw over the counter from banks and other financial institutions.

When the cash withdrawal policy was first published, it sparked a whirlwind of controversy, prompting the CBN to change some of its limitations.

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CBN cashless policy begins
The Central bank of Nigeria is aiming to develop a cashless society Photo credit: @cbn
Source: Getty Images

Here are the 10 things to know about the cash withdrawal policy

  1. Individuals' withdrawal over the counter is limited maximum to N500,000 per week
  2. Corporate organizations are only allowed to withdraw cash of N5 million maximum weekly
  3. Third-party cheques above N100,000 will not be eligible for payment over the counter.
  4. The existing limit of N10 million on clearing cheques still subsists.
  5. Once a month, the CBN says it will allow individuals and organizations to make cash withdrawals above the prescribed limits if it is required for legitimate purposes.
  6. Individuals will be required to pay a processing fee of 3% for cash withdrawals above the prescribed limits
  7. While organizations will pay 5% should they need to withdraw cash above the limit prescribed
  8. Banks are required to do due diligence and seek documentation such as the payee's bank verification number (BVN) and a legitimate means of identification if customers chose to withdraw above the prescribed limits
  9. Bank managers approve cash withdrawals above the prescribed limits for individuals and corporate
  10. Banks will report transactions that are adjudged to be suspicious to the CBN supervision team

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Full list of banks' USSD codes for e-payments

Meanwhile in another report, Legit.ng has provided a list of banks' USSD codes for quick payment amid the CBN drive for a cashless society

One major structure to achieve this is the use of Unstructured Supplementary Service Data(USSD) for transactions since it doesn't need internet

The report also provided a breakdown of steps any Nigerian can start using the various service it provided.

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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