Nigeria Bans ATM Cash Withdrawals to $45 per Day to Push Digital Payments
On Tuesday, Nigeria’s Central Bank announced a new directive that restricts large amounts of cash from being withdrawn from automatic teller machines (ATM).
According to reports, Nigeria restricted ATM cash withdrawals from $337 (150,000 naira) to $45 (20,000 naira) per day for individuals and businesses in order to encourage the use of Nigeria’s central bank digital currency (CBDC).
The central bank announced a weekly cap on cash withdrawals of $225 (100,000 naira) for individuals and $1,125 (500,000 naira) for businesses, with a cost of 5% and 10%, respectively, for amounts in excess of the limit.
The new policy will take effect on January 9, 2023.
From Nigeria’s Central Bank:
Letter to All Deposit Money Banks (DMBS) and Other Financial Institutions (Payment Service Banks (PSBs), Primary Mortgage Banks (PMBs) and Microfinance Banks (MFBs)
NAIRA REDESIGN POLICY – REVISED CASH WITHDRAWAL LIMITS
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 CB, all deposit money banks (DMBs) and other financial institutions (OFIs) are hereby directed to note and comply with the following:
The maximum cash withdrawal over the counter (OTC by individuals and corporate organizations per week shall henceforth be #100,000 and #500,000 respectively. Withdrawals above these limits shall attract processing fees of 5% and 10%, respectively.Third-party cheques above N50,000 shall not be eligible for payment over the counter, while extant limits of #10,000,000 on clearing cheques still subsist.The maximum cash withdrawal per week via Automated Teller Machine (ATM) shall be #100,000 subject to a maximum of N20,000 cash withdrawal per day.Only denominations of #200 and below shall be loaded into the ATMs.The maximum cash withdrawal via point of sale (PoS) terminal shall be N20,000 daily.In compelling circumstances, not exceeding once a month, where cash withdrawals above the prescribed limits is required for legitimate purposes, such cash withdrawals shall not exceed #5,000,000.00 and #10,000,000.00 for individuals and corporate organisations, respectively, and shall be subject to the referenced processing fees in (1) above, in addition to enhanced due diligence and further information requirements.
Further to (6) above, you are required to obtain the following information at the minimum and upload same on the CB portal created for the purpose:
Valid means of identification of the payee (National ID, International Passport, Driver’s License).Bank Verification Number (BVN) of the payee.Notarized customer declaration of the purpose for the cash withdrawal.Senior management approval
Source: The Gateway Pundit
