New cbn policy on deposit and withdrawal

You're referring to the recent policy changes by the Central Bank of Nigeria (CBN) on deposit and withdrawal limits.

As of January 2023, the CBN introduced new guidelines for deposit and withdrawal limits in Nigeria. Here are the key changes:

Deposit Limits:

  1. Individuals: N500,000 (approximately $1,250) per day
  2. Corporate entities: N5,000,000 (approximately $12,500) per day

Withdrawal Limits:

  1. Individuals: N100,000 (approximately $250) per day
  2. Corporate entities: N500,000 (approximately $1,250) per day

Additional Requirements:

  1. For withdrawals above N500,000, individuals and corporate entities must provide a valid reason for the withdrawal.
  2. For withdrawals above N1,000,000, individuals and corporate entities must provide a valid reason and obtain approval from the CBN.
  3. For withdrawals above N5,000,000, individuals and corporate entities must provide a valid reason, obtain approval from the CBN, and provide additional documentation, such as a letter of credit or a guarantee from a reputable financial institution.

Purpose of the Policy:

The CBN introduced these measures to:

  1. Enhance financial stability and reduce the risk of money laundering and terrorist financing.
  2. Improve the efficiency of the financial system and reduce the burden on banks.
  3. Promote financial inclusion and increase access to financial services for individuals and small businesses.

Impact on Nigerians:

The new policy may affect individuals and businesses in several ways:

  1. Reduced cash transactions: The policy may encourage the use of digital payment methods, such as mobile wallets and online banking, to reduce cash transactions.
  2. Increased costs: Businesses may need to pay higher fees for transactions above the withdrawal limits.
  3. Reduced access to cash: Individuals and businesses may face challenges accessing cash above the withdrawal limits, which could impact their daily activities.

It's essential to note that these policies are subject to change, and individuals and businesses should stay informed about any updates or modifications to the guidelines.