Deposit Money Banks (DMBs) on Thursday began circulating the newly redesigned notes across the N200, N500, and N1,000 denominations which is in line with the release date set by the Central Bank of Nigeria (CBN). However, according to reports from various banks, they were only given a limited supply of the new Naira notes but analysts suggest that the CBN would make more available for circulation in due time.
Several banks are yet to receive the new Naira notes and are still dispensing the old Naira notes, meanwhile, Automated Teller Machines (ATMs) are still dispensing the old notes.
According to financial experts, the CBN is trying to limit the amount of physical cash in circulation and is trying to promote and increase electronic transactions.
The apex bank had disclosed that the redesigned Naira notes would assist in reducing ransom payments to terrorists and kidnappers, adding that the old N200, N500 and N1,000 notes would cease to be used as legal tender by January 31, 2023.
The CBN also directed DMBs and other financial institutions that over-the-counter cash withdrawals should not exceed the sum of N100,000 and N500,000 per week for individuals and corporate entities respectively. However, those who want to withdraw more would pay a processing fee of 5 percent for individuals and 10 percent for corporate organizations.
A customer must also provide a valid means of identification (National ID, International Passport etc.), Bank Verification Number (BVN), a notarized declaration of the purpose of the cash withdrawal, and written approval from the company's Managing Director in the case of a corporate account.
The apex bank also stated that the daily maximum withdrawal from a Point of Sale (PoS) terminal is N20,000.
It also stated that the withdrawal limit policy would take effect across the country from January 9, 2023.
