WED DEC 03 2025-theGBJournal| The Central Bank of Nigeria (CBN) has reset the terms of cash-withdrawal related policies, which has flummoxed and rattled depositors and markets since the advent of Covis-19 in 2019.
The new cash-related policies, which are for mandatory compliance by all deposit-taking financial institutions in Nigeria, and which shall apply nationwide, specifies that the cumulative deposit limit on deposit and associated fee on excess deposit shall no longer apply.
Besides, the cumulative weekly withdrawal limit across all channels is drastically increased to N500,000 for individuals and N5 million for corporates, while cumulative weekly withdrawals above these limits shall attract excess withdrawal fees, and the special authorisation for withdrawal of N5 million and 10 million once monthly by individuals and corporates, respectively, shall no longer apply.
Automated Teller Machine (ATM) withdrawal limit also has been increased to N100,000 daily (per customer), subject to a maximum of N500,000 weekly, while excess cash withdrawals shall attract fees of 3 percent and 5 percent to individual and corporate customers, respectively, on the excess amount withdrawn.
The fee, the Central Bank said, shall be shared 40 percent to the CBN and 60 percent to the bank or financial institution.
The apex bank also advised that All currency denominations may be loaded in ATMs.
Among other rule change, the CBN said the limit on over-the-counter encashment of 3rd party cheques is retained at N100,000.
”Account holders are advised that any withdrawal under this section will form part of the cumulative weekly.
Banks shall render monthly returns on cash withdrawal transactions above the specified limit, and Returns on Cash Deposits, to the respective supervisory departments (Banking Supervision Department, Other Financial Institutions Supervision Department and Payments System Supervision Department).”
Deposit Money Banks (DMBs) also now required to create separate accounts to warehouse processing charges collected on cash withdrawals above the limits with some exemptions.
The CBN specified that Accounts/entities such as Revenue generating accounts of federal, state, and local governments; and Accounts of microfinance banks and primary mortgage banks with commercial and non-interest banks.
It said exemptions of embassies, diplomatic missions and aid-donor agencies from specific cash policies shall no longer apply.
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