Banks succumb to CBN directive on cash availability to customers

Deposit Money Banks (DMBs) have begun implementing new withdrawal limits in compliance with a directive from the Central Bank of Nigeria (CBN) issued on December 17, 2024. The directive caps daily withdrawals on Point-of-Sale (PoS) terminals at ₦100,000 per customer, with a weekly limit of ₦500,000.

According to the CBN, these measures aim to address operational challenges, combat fraud, and establish uniform standards across the banking industry. Many banks have already informed customers via email about the new policy. A typical email stated:

“In line with CBN directives, please note that effective immediately, the daily withdrawal limit on PoS is ₦100,000, while the weekly limit is capped at ₦500,000. Our Automated Teller Machines (ATMs) are also available for your cash withdrawals. We encourage you to use alternative channels for all your transactions.”
The enforcement of these new withdrawal limits follows recent CBN sanctions on nine banks for failing to ensure adequate cash availability during the festive season. These banks—Fidelity Bank Plc, First Bank Plc, Keystone Bank Plc, Union Bank Plc, Globus Bank Plc, Providus Bank Plc, Zenith Bank Plc, United Bank for Africa Plc, and Sterling Bank Plc—were fined ₦1.35 billion in total, with each paying ₦150 million.

The penalties were based on spot checks by the CBN, which revealed significant non-compliance with cash distribution guidelines. The sanctions came after repeated warnings to financial institutions to ensure seamless cash availability, especially during periods of high demand.

source: hallmarknews.com

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