The weekly over-the-counter cash withdrawal cap set by Nigeria’s central bank, CBN, is N100,000 for individuals and N500,000 for businesses.
It claimed that this was in keeping with its strategy to encourage cashless transactions. It happens just days after the government in West Africa introduces new currencies.
The central bank set a weekly withdrawal cap of N100,000 and a daily withdrawal limit of N20,000 from ATMs in a circular.
Additionally, it mandated that ATMs only accept withdrawals in denominations of N200 or less.
The maximum amount for withdrawals from the point-of-sale (POS) system, which is mostly used to pay for items, is N20,000. On January 9, the new limitations will take effect.
The decision is coming after the CBN began the distribution of its newly redesigned bank notes. The bank said redesigning the notes will help check inflation, counterfeiting and corruption.
In the new development, CBN directed that only N200 and lower denominations should be loaded into banks’ ATM machines.
“Further to the launch of the redesigned naira notes by the President of the Federal Republic of Nigeria on Wednesday, November 23, 2022, and in line with the cashless policy of the CBN, all deposit money banks and other financial institutions are hereby directed to note and comply with the following:
“The maximum cash withdrawal over the counter by individuals and corporate organisations per week shall henceforth be N100,000 and N500,000 respectively. Withdrawals above these limits shall attract processing fees of 5 percent and 10 percent, respectively.
“Third-party cheques above N50,000 shall not be eligible for payment over the counter, while extant limits of N10,000,000 on clearing cheques still subsist,” it read.