Banks implement N100k daily, N500k weekly withdrawal limits on PoS terminals

• Banks have begun implementing N100,000 daily and N500,000 weekly withdrawal limits on Point of Sale terminals
• The implementation comes weeks after the Central Bank of Nigeria gave the directive to curb cash scarcity
• The CBN fined nine banks N150 million each for failing to ensure cash availability at their Automated Teller Machines

There are indications that banks have begun implementing the Central Bank of Nigeria's (CBN) N100,000 daily withdrawal limit on Point-of-Sale (PoS) terminals.

Weeks after the CBN, on December 17, 2024, gave the directive, Union Bank, in an email to customers said implementation of the daily withdrawal limit has commenced and customers are limited to a weekly withdrawal of N500,000 on PoS.

The bank’s email to customers also stated that cash withdrawals can be made through its Automated Teller Machines (ATMs), and encouraged customers to use alternative channels for transactions.

It read, “In line with CBN directives, please note that effective immediately, the daily withdrawal limit on POS is now N100,000, while the weekly limits are now fixed at N500,000.

“Our ATMs are also available for your cash withdrawals. We encourage you to use our alternative channels (UnionMobile, *826#, UnionOnline) for all your transactions.”

CBN gave the directive to ensure cash availability

On December 17, the CBN introduced a new policy that limits daily transactions of N100,000 per customer for cash-out transactions conducted by PoS agents.

The apex bank also set each customer’s weekly cash withdrawal limit at N500,000 irrespective of channel, while each agent’s daily cumulative cash-out limit was pegged at N1.2 million.

The policy aimed to curb the reported cases of cash scarcity and ensure availability, especially during the festive season.

To halt the illicit flow of minted banknotes to currency hawkers and economic agents that commodify naira banknotes, the CBN announced a N150 million fine at first instance per branch of banks found guilty.

The apex bank, in a circular on November 13, 2024, announced stringent penalties for banks found culpable of hoarding or diverting cash to hawkers.

The CBN said any bank linked to cash seized from hawkers would face a fine of 10 per cent on the total value of the withdrawn funds and subsequent violations would attract an incremental penalty of five per cent.

It also warned banks against cash hoarding and diversion, as such practices limit access to cash and undermine its efforts to ensure an efficient and effective cash flow.

CBN fined nine banks for cash hoarding

The CBN sanctioned nine Deposit Money Banks (DMBs) recently for failing to make cash available through their ATMs during the festive season.

The CBN fined each bank N150 million, amounting to N1.35 billion, for non-compliance with the CBN’s cash distribution guidelines, following spot checks on their branches.

The affected banks include United Bank for Africa (UBA) Plc, Zenith Bank Plc, FirstBank Plc, Fidelity Bank Plc, Keystone Bank Plc, Union Bank Plc, Globus Bank Plc, Providus Bank Plc, and Sterling Bank Plc.

CBN to start fining banks over cash scarcity at ATMs

Meanwhile, TheRadar earlier reported that the Central Bank of Nigeria (CBN) issued a stern warning to financial institutions over the ongoing cash scarcity at Automated Teller Machines (ATMs) across the country. 

CBN governor, Olayemi Cardoso, announced that penalties would be imposed on erring banks and other financial players during his address at the annual Bankers’ Dinner organised by the Chartered Institute of Bankers of Nigeria on Friday, November 29.