Trying to rein in an economy in which cash still dominates, Nigeria is imposing limits on how much cash its people can withdraw per day from automatic teller machines.
In a letter sent to banks on Tuesday, the Central Bank of Nigeria said that as of Jan. 9, the daily limit of money that can be withdrawn per day is 20,000 naira, which, according to Bloomberg, comes to $44.97.
The current limit is 150,000 naira.
The new edict limits weekly withdrawals of cash at no more than 100,000 naira for people and 500,000 naira for corporations. Withdrawals above those limits will trigger hefty fees, according to the letter.
Other rules include a ban on cashing checks above 50,000 naira over the counter and getting more than 20,000 naira a day through cash withdrawals at point-of-sale terminals.
Trending:
“Customers should be encouraged to use alternative channels (internet banking, mobile banking apps, USSD, cards/POS, eNaira etc.) to conduct their banking transactions,” the central bank said in its letter.
The Central Bank has been trying to wean Nigerians off of cash through a policy it calls Cash-less Nigeria.
“High cash usage enables corruption, leakages and money laundering, amongst other cash-related fraudulent activities,” the Central Bank’s website proclaims.
Bloomberg estimates that the policy has a long way to go, with about 85 percent of Nigeria’s currency held outside of banks. Almost 40 million adults do not have bank accounts.
Do you still carry cash?
Yes: 0% (0 Votes)
No: 0% (0 Votes)
The policy is linked to concerns over gangs that turn to kidnapping as a form of making money through ransom, according to Reuters.
Other issues the bank has cited include counterfeiting, according to a report by Agence France Presse posted by Barrons’s.
The report also linked the policy to an effort to limit buying of votes and other shady transactions as the nation approaches its presidential election in February.
The central bank has redesigned the nation’s high-denomination currency, with residents being given until Jan. 31 to exchange their current cash for the new notes.
…Source
Leave a Comment