New cbn policy on cash withdrawal
You're referring to the recent policy change by the Central Bank of Nigeria (CBN) on cash withdrawal limits.
As of January 9, 2023, the CBN introduced a new policy that restricts cash withdrawals from current and savings accounts to N100,000 (approximately $220) per day for individuals and N500,000 (approximately $1,100) per day for corporate organizations.
Here are the key highlights of the policy:
- Cash withdrawal limits: Individuals can withdraw a maximum of N100,000 (approximately $220) per day from their current and savings accounts. Corporate organizations can withdraw a maximum of N500,000 (approximately $1,100) per day.
- Exemptions: The policy does not apply to withdrawals made through Point of Sale (POS) terminals, Automated Teller Machines (ATMs), and online banking platforms.
- Reasons for the policy: The CBN cited the need to reduce the use of cash in transactions, promote digital payments, and curb the circulation of counterfeit currency.
- Implementation: The policy is expected to be implemented by all commercial banks, microfinance banks, and other financial institutions in Nigeria.
- Penalties: Banks that fail to comply with the policy may face penalties, including fines and suspension of operations.
The CBN has also introduced a new framework for cashless transactions, which includes:
- Cashless policy: The CBN aims to reduce cash transactions to 30% of total transactions by 2025.
- Digital payment channels: The CBN encourages the use of digital payment channels, such as mobile banking, online banking, and POS terminals.
- Incentives: The CBN will offer incentives to individuals and businesses that adopt digital payment channels, such as discounts and rewards.
Overall, the new policy aims to promote a cashless economy, reduce the use of cash, and increase the adoption of digital payment channels in Nigeria.