The daily cash withdrawal cap for banks’ automated teller machines (ATMs) has once again been reduced by the Central Bank of Nigeria (CBN) to N20,000 from N100,000.
This implies that consumers, regardless of the bank or the number of accounts they manage, would only be allowed to withdraw a total of N20,000 per day from their account(s) at any ATM.
Sources from several of the banks verified that the new review was announced to deposit money banks earlier this week and that it became effective on January 23, 2023.
According to the sources, the apex bank also instructed commercial banks to link customers’ bank verification numbers (BVNs) to their ATM cards to ensure that no customer is able to use two or more banks to exceed the N20,000 limit in a day.
Meanwhile, Fidelity Bank has already communicated the new policy to its customers.
In an email message to its customers on Wednesday, the lender said: “Please be informed that the Central Bank of Nigeria has revised its daily cash withdrawal limit on ATM from M100,000 to 20,000 effective 23rd January 2023.
“This means that you will only be able to withdraw a cumulative daily amount of N20,000 from your account across all ATMs irrespective of the bank.”
No matter how many bank accounts they manage across several banks, the new regulation prohibits bank clients from withdrawing more than N20,000 using ATM cards in a single day. This may be verified by their BVN.
Remember that the CBN implemented a N100,000 cash withdrawal restriction over the counter (OTC) for individuals and a N500,000 limit for business organizations on December 6, 2022, following the introduction of new naira notes.
The apex bank revised the withdrawal cap upward in response to the outcry the new policy caused, enabling individuals and business organizations to take a maximum of N500,000 and N5 million, respectively.
Under the updated regime, the bank had said effective January 9, 2023, individuals and corporate entities can withdraw a maximum of N500,000 and N5 million, respectively, away from N100,000 and N500,000, respectively, which was previously announced on December 6, 2022.
In an updated circular dated December 21, 2022, and addressed to all banks and other Financial Institutions, microfinance banks, mobile Money Operators, and agents, the CBN explained that the upward review was as a result of the feedback it received from stakeholders.
The correspondence was signed by CBN director, Banking Supervision Department, Mr. Haruna Mustafa.
The CBN stated that in compelling circumstances, where cash withdrawal above the limit was required for legitimate purposes, such request shall be subject to a processing fee of three per cent and five per cent for individuals and corporate organisations, respectively.
The Central Bank, in yielding to public pressure on the review, noted that it recognised the role that cash played in supporting underserved and rural communities and would ensure an inclusive approach as it implemented the transition to a more cashless society.