Cash Withdrawal Policy: Banks commences Automatic Debit System

Cash Withdrawal Policy: Banks commences Automatic Debit Syste

Commercial banks have begun the enforcement of the Central Bank of Nigeria’s (CBN) cash withdrawal limit policy for transactions across channels.

The banks are also adjusting their IT systems to take charges on customers’ accounts that exceed set limits, The Nation learnt.

CBN reviewed the weekly cash withdrawal limit to N500,000 and N5 million for individual and corporates.

The policy shift announced by CBN Director, Banking Supervision Department, Haruna Mustafa, represents 400 per cent increase, from N100,000 and N1 million withdrawal limit for individual and corporates set by the apex bank in its December 6 circular.

Corporate and individual customers that exceed the limit are to pay five per cent/three per cent fees on the excess amount.

The enforcement, which commenced January 9, has seen banks adapting their technologies for easy implementation.

A branch operations manager in one of the tier-1 bank in Marina, Lagos, said his bank’s IT unit has been directed to set up direct debit command on the Flexcube software to debit account of any customer that exceed the set limit.

The source said the bank is applying carrot and stick approach, by advising customers to go cashless and carryout limitless transactions and enforcing charges on those that exceed set lint.

At Keystone Bank branch, Maryland, a customer who came to make N1 million withdrawal, later took N500,000 after the branch manager told him of the cost implications.

The customer, Abubakr Saliu, a bureaux de change operator, based in Ikeja, said he would send the balance to his customer through transfer.

“I was not fully aware of the policy, but the branch manager explained to me that I would pay three per cent fee on the extra N500,000. I do not have the capacity to absorb such cost. I have explained to my customer that I will send the balance through mobile money transfer,” he said.

Access Bank, Zenith Bank, among others, have sustained their sensitisation to customers on the need to embrace digital channels to avoid the restrictions.

In an emailed report to customers, Access Bank said: “Dear esteemed customers, please be informed that effective, January 9, 2023, the Central Bank of Nigeria’s updated Monetary Policy for cash withdrawal will become operative. Maximum weekly withdrawals across all channels will be N500,000 for individuals, with three per cent processing fee for additional withdrawals”.

Continuing, the bank said businesses have N5 million limit and five per cent processing fee on additional withdrawals. The maximum amount for third-party cheques eligible for over-the-counter payment is N100,000 while the limit of N10 million on cheques paid into account remains the same.

Access Bank added: “To avoid the restrictions on cash withdrawals and enjoy higher transaction limits, please use digital channels and internet banking for transactions.”