Naira redesign: 5% and 10% fees apply to cash withdrawals over N100,000 and N500,000.
As a step toward implementing the naira redesign strategy, the Central Bank of Nigeria, CBN, has released a new cash withdrawal policy that states withdrawals over N100,000 and N500,000 will now be subject to 5% and 10% fees, respectively.
The apex bank also said that going forward, only denominations of N200 and lower will be accepted at ATMs.
The CBN’s director of banking supervision, Haruna Mustafa, sent a letter on Monday to all deposit money banks, other financial institutions, primary mortgage banks, and microfinance banks, according to information obtained by Obasanjonews24.
A third-party check for more than N50,000 would not be accepted for payment, per the letter cited with the BSD/DIR/PUB/LAB/015/069
The daily cap for over-the-counter, OTC, and ATM withdrawals is N20,000.
The maximum cash withdrawal through the point of sale (PoS) terminal should be N20,000, it was further stated.
“From now on, the weekly ceiling for cash withdrawals made over the counter (OTC) by both private persons and business entities will be N100,000 and N500,000, respectively.
Third-party checks exceeding N50,000 are not acceptable for payment over the counter, and there are still current limits of N10,000,000 on clearing checks. The maximum amount of cash that can be withdrawn each week from an ATM is N100,000, subject to a maximum of N250,000.
A third-party check for more than N50,000 would not be accepted for payment, per the letter cited with the BSD/DIR/PUB/LAB/015/069
The daily cap for over-the-counter, OTC, and ATM withdrawals is N20,000.
“Withdrawals above these limits will incur processing fees of 5% and 10%, respectively; third-party cheques above N50,000 will not be accepted for payment over the counter while the current limits of N10,000,000 on clearing cheques remain in effect; the maximum amount of cash you can withdraw from an ATM in a week is N100,000, with a daily limit of N20,000; The maximum cash withdrawal via point of sale (PoS) terminal shall be N20,000 daily and in compelling circumstances, not more than once a month. Where cash withdrawals above the prescribed limits are required for legitimate purposes, such cash withdrawals shall not exceed N5,000,000 and 10,000,000 for individuals and corporate organizations, respectively, the letter stated. Only denominations of N200 and below shall be loaded into the ATMs.
The CBN announced its intention to revamp the 200, 500, and 1000 naira denominations on October 26. It stated that the new notes would begin to circulate on December 15, 2022, and that the existing naira notes would cease to be used as of January 31, 2023.
