After receiving “feedback from stakeholders,” the Nigerian Central Bank raises the cash withdrawal caps

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The Central Bank of Nigeria announced on December 21 that beginning on January 9, 2023, people will be able to withdraw the equivalent of $1,120 per week. This announcement came just one month after it was announced that cash withdrawals would be limited to under $50 per week. Individuals and corporate entities that withdraw money in excess of the new limits will be charged processing fees of 3% and 5%, the central bank announced.

CBN’s Push for Digital Currency
According to the Central Bank of Nigeria (CBN), from January 9, 2023, individual banking customers will be able to withdraw an amount equal to $1,120 (N500,000) per week, up from the sub-$50 cap put in place on December 6. The CBN announced that the previously announced limit on cash withdrawals for corporate organisations would be reduced to a maximum of $11,200.

The CBN, which is promoting the widespread use of its digital currency, stated in a new circular to heads of financial institutions that it made the decision to change the cash withdrawal limits “based on feedback received from stakeholders.” The bank continued by saying that despite its advocacy for a society free of cash, it is still aware of the importance of cash, particularly in underserved areas.

According to a statement from the central bank, “The CBN recognises the crucial 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.”

Processing Fees for Withdrawals Exceeding New Limits
The Nigerian central bank decided to limit cash withdrawals as it prepared to introduce new banknotes, as previously reported by News. The CBN is attempting to encourage the use and adoption of the e-naira by releasing the new banknotes, which were later put into circulation on December 15.

According to the CBN’s most recent circular, processing fees of 3% and 5% will be applied to individuals and corporate organisations who wish to withdraw amounts above the new limits. Additionally, these withdrawals won’t be processed until the client gives the bank a number of papers, including an authorization letter from the CEO of a financial institution.

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