CEM REPORT, FINANCE | The Central Bank of Nigeria (CBN) had stated that it had ordered for N500 million to be printed for circulation.
The apex bank added that its policy of cash withdrawal limit was sequel to critical thinking, research and other considerations.
According to the Deputy Governor, CBN, Aisha Ahmad, while answered questions from lawmakers at the House of Representatives during plenary in Abuja on Thursday, the cash policy on politics, contrary to insinuations.
Ahmad, who represented the CBN Governor, Godwin Emefiele, that the policy was expected to create new jobs in the ICT sector, contrary to insinuations that it would lead to job lost.
She said the operators of Point on Sales (POS) would not be affected by the policy, adding that that the CBN was aware that the POS had created a means of livelihood for about 4.4 million Nigerians.
Meanwhile according to a circular seen by CEM, the CBN has increased the weekly withdrawals for individuals and corporate organisations to N500,000 and N5 million, respectively.
This is as against the initial over-the-counter cash withdrawals limit of N100,000 and N500,000, individuals and corporate entities respectively, per week.
The review also dropped the processing fees for cash above the stated amount from 5% and 10%, for individuals and corporate entities respectively, to 3% and 5% for individuals and corporate organizations, respectively.
The CBN explained that it is aware of the important role that cash plays in the Nigerian economy, particularly in rural Nigeria where virtually all transactions are cash-based.
“The CBN recognises the vital role that cash plays in supporting underserved and rural communities and will ensure an inclusive approach as it implements the transition to a more cash-less society. All banks and OFIs are to note that aiding and abetting the circumvention of this policy will attract severe sanctions.”
The apex bank however maintained that before processing any cash withdrawal request above the specified limits, financial institutions must get the following documents from their customers and forward the same to the CBN for approval:
Valid means of identification of the payee (National ID, International Passport, or Driver’s License).
Bank Verification Number (BVN) of the payee.
Tax Identification Number (TIN) of both the payee and the payer.
Approval in writing by the MD/CEO of the financial institution authorising the withdrawal.
However, the CBN noted that cheques above N100,000 will not be eligible for over-the-counter withdrawal. Also, the extant limit of N10 million on clearing cheques will subsist.
Furthermore, the CBN further directed Other Financial Institutions (OFIs) to ensure that monthly returns on cash withdrawals above the specified limits are rendered to the appropriate departments.
OFIs were also advised to encourage their customers to use alternative channels like USSD, mobile banking, internet banking, POS, eNaira, etc.
The CBN further warned OFIs that there will be consequences for anyone caught aiding and abetting the circumvention of the policy