Naira Redesign: CBN Issues New Circular, Nigeria Begins Cashless Economy

Nigeria will begin the practice of full cashless economy by January 2023, according to Central Bank of Nigeria, CBN new circular on over the counter/ATM withdrawal limit.

The CBN new circular, signed by Haruna B. Mustafa, CBN Director in charge of Banking Supervision, issued and made available on Tuesday indicated that the cashless economy will begins on January 09, 2023.

According to the CBN circular, third party Cheque above 50,000 naira will no longer be eligible for over the counter withdrawal. This is against the previous partial cashless policy of 150,000 per third party cheque.

The new CBN circular mandated all money deposit banks, Financial Institutions and Microfinance banks to enforce and ensure all bank customers comply with the policies.

The policy limit ATM cash withdrawal to 20,000 naira maximum per day.

All banks are also mandated to load ATM with 200 naira denomination only.

Bank customers will only be able to withdraw maximum of 100,000 naira cash per week via ATM, according to the CBN new cashless economy policy.

Maximum withdrawal at the Counter weekly for individual customer shall be 100,000 naira. While maximum withdrawal at the Counter weekly for Corporate Organization shall be 500,000 naira only.

Though, CBN permit cash withdrawal above the set limit if the customer needed such cash for legitimate business transactions, but, that must not exceed 5 million naira for individual clients and 10 million naira for corporate organizations.

That not withstanding, CBN insists, the payee must pay 5 percent processing fees for withdrawal above 100,000 naira cash limit for individual clients and 10 percent processing fees for withdrawal above 500,000 naira cash limit for Corporate organizations.