Recall that in an effort to promote digital payments, the Central Bank of Nigeria (CBN) placed restrictions on the amount of cash that individuals and corporate entities may take from ATMs each week.
The maximum amount of cash that can be withdrawn each week, according to a circular from the bank, is N100,000 for individual customers and N500,000 for corporate clients. However, those who wish to take more than that must be willing to pay a processing fee of 5% for individuals and 10% for corporations.
The apex bank also set the daily limit withdrawals from a point of sale (PoS) terminal at N20,000.
The new regulation will go into effect on January 9, 2023.
Name Spur Nigeria is aware that its objective is to reduce the amount of physical cash used in the economy while increasing the number of transactions made electronically.
Nigerians, both bank customers and POS operators, are not happy about this and feel that this is the beginning of the end for them.
According to the CBN, this policy was developed to promote the usage of digital financial transactions, which it feels Nigerians are not yet adopting despite efforts to do so.
Nigerians can still withdraw more money than the CBN cash limitations despite this barrier, but they must first meet the conditions specified below.
A customer must present a legitimate form of identity, such as a national ID, foreign passport, driver’s license, or permanent voter’s card, in order to withdraw more than the N100,000 and N500,000 limitations (PVC).
Additionally, the consumer would need to supply a notarized statement stating the reason for the cash withdrawal as well as their Bank Verification Number (BVN).
The consumer would then need to request corporate drawee in writing from the company’s managing director.
When all of these are given, the bank will process them and request the chief executive’s approval before releasing the funds to the client.