*Deposit Money Banks suspend further cash disbursement via consumers鈥� Naira Credit and prepaid cards in compliance with the Central Bank of Nigeria’s currency redesign and cash withdrawal policy

Isola Moses | 绿帽献妻

In line with the banking regulator’s directive, the Deposit Money Banks (DMBs) have suspended further cash disbursement via customers鈥� Naira Credit and prepaid cards in Nigeria.

绿帽献妻 reports this move is in compliance with the Central Bank of Nigeria鈥檚 (CBN) currency redesign and cash withdrawal policy that limited withdrawals across all channels to N500,000 weekly in the West African country.

Subsequently, the banks have informed consumers of financial products and services through text messages (SMS), that these channels can no longer be used to access cash for the time being, according to report.

Stanbic IBTC, in a message to one of its customers, stated: 鈥淔ollowing the Naira redesign policy limiting local cash withdrawals across all channels to N500,000 weekly, please be informed that cash withdrawal on your Naira credit and prepaid card will not be available for now.鈥�

In relation to the Bank’s currency redesign project, the CBN had announced an upward review of its cash withdrawal policy across all payment channels by individuals and corporate organisations.

The Bankers’ Bank, under the updated regime, said effective January 9, 2023, individuals and corporate entities could withdraw a maximum of N500,000 and N5 million respectively compared to N100,000 and N500,000 previously announced December 6, 2022.

In an updated circular dated December 21, 2022, and addressed to all Deposit Money Banks and Other Financial Institutions (OFIs), Microfinance Banks (MFBs), Mobile Money Operators, and Agents, explained that the upward review was as a result of the feedback it received from stakeholders.

Similarly, the CBN directed that third-party cheques above N50,000 shall not be eligible for Over-the-Counter (OTC) payment while extant limits of N10 million on clearing cheques still remain in the economy.

Mr. Haruna Mustafa, Director of Banking Supervision Department at CBN, in a circular, had stressed that in compelling circumstances where cash withdrawal above the limit is required for legitimate purposes, such request shall be subject to a processing fee of 3 percent and 5 percent for individuals and corporate organisations respectively.

According to CBN, in yielding to public pressure on the review, it noted the Bank recognises the role that cash plays in supporting underserved and rural communities.

It also assured of an inclusive approach as it implements the transition to a more cashless society in Nigeria.