The Central Bank of Nigeria (CBN) has again effected a downward review of the daily cash withdrawal limit on Automated Teller Machines (ATMs) to N20,000 from N100,000 across banks.
This means that customers will only be able to withdraw a cumulative daily amount of N20,000 from their account(s) across all ATMs irrespective of the bank or the number of accounts they operate.
The new review was communicated to deposit money banks earlier in the week and already took effect from 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.”
With the new policy, bank customers will not be able to withdraw more than N20,000 in a day via ATM cards, no matter the number of bank accounts they operate across different banks as such can be tracked through their BVN.
Recall that the CBN had on December 6, 2022, following the unveiling of new naira notes imposed N100,000 cash withdrawal limit over the counter (OTC), for individuals, and N500,000 for corporate organizations.
However, amid the outrage the new policy generated, the apex bank effected an upward review of the limit, allowing individuals and corporate entities to withdraw a maximum of N500,000 and N5 million, respectively.
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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 the 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 percent and five percent for individuals and corporate organizations, respectively.
The Central Bank, in yielding to public pressure on the review, noted that it recognized 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.
Akinshola Akintelure is a Content Writer, a tech savvy and Social Media Manager.