The CBN caps cash withdrawals at N100,000, N200 now maximum ATM denomination

The Deposit Money Banks (DMOs) and other financial institutions have been directed by the Central Bank of Nigeria (CBN) to guarantee that weekly over-the-counter (OTC) cash withdrawals by both private people and corporate entities do not exceed N100,000 and N500,000, respectively.

In a circular published on Tuesday and signed by Haruna Mustafa, director of banking supervision at the CBN, the apex bank announced this.

The regulatory directions, according to the apex bank, go into effect on January 9, 2023, across the board.

The CBN also set a N20,000 daily maximum withdrawal limit for PoS terminals.

“The maximum cash withdrawal per week via Automatic Teller Machine (ATM) shall be N100,000 subject to a maximum of N20,000 cash withdrawal per day.

“Only denominations of N200 and below shall be loaded into the ATMs.” 

The new policy, according to the bank, follows President Muhammadu Buhari’s November 23, 2022 introduction of the revised N200, N500, and N1,000 notes.

The redesign of the three bank notes was announced by CBN Governor Godwin Emefiele on October 26, 2022. He added that the new and old currencies would continue to be accepted as legal tender and circulate side by side until January 31, 2023.

The central bank thinks the new notes will reduce the amount of currency in circulation, which will stop politicians from rigging elections and ransom-demanding kidnappers from engaging in their horrific crimes.

The Peoples Democratic Party (PDP) and other notable Nigerians, including Pastor Enoch Adeboye of the Redeemed Christian Church of God (RCCG) and Governor Godwin Obaseki of Edo State, have criticized the redesign of the naira as lacking any economic foundation.