Banks Introduce New Cash Withdrawal Limits; POS Operators Adjust Charges

Several banks across Nigeria have announced new cash withdrawal limits for customers, marking a significant shift in the country’s banking policy. The move, which comes amid ongoing efforts to curb inflation and promote the use of digital banking, has sparked mixed reactions from the public......Read The Full Article>>.....Read The Full Article>>

Naija247news understands that the new withdrawal limits, which will take effect immediately, will affect both over-the-counter withdrawals and automated teller machine (ATM) withdrawals. According to Naija247news, customers are now allowed to withdraw only a set amount per day, with daily limits ranging from N100,000 to N200,000, depending on the bank’s specific policy. This adjustment is seen as part of the Central Bank of Nigeria’s (CBN) broader strategy to reduce the volume of physical cash in circulation and encourage electronic transactions.

Naija247news gathered that the announcement has led to a wave of inquiries from customers, many of whom are concerned about the practicality of the new limits, especially in regions where digital payment infrastructure is not as robust. However, Naija247news understands that the decision is part of the government’s larger effort to promote cashless transactions and reduce the dependence on physical currency.

According to Naija247news, the move also coincides with adjustments in Point of Sale (POS) charges by operators. Naija247news understands that POS operators have been prompted to revise their transaction fees in response to the increased demand for electronic payment services. Many operators have indicated that the recent adjustments are aimed at making up for the reduction in cash withdrawals, with some fees seeing an increase of up to 2% per transaction. This change has raised concerns among small businesses that rely heavily on POS services, as they are now facing higher transaction costs.

In an official statement, Naija247news gathered that the banks clarified that the revised withdrawal limits are part of a phased implementation of a cashless policy, which aims to encourage more Nigerians to adopt digital banking. The statement also reassured customers that they will still have access to their funds through alternative channels such as mobile banking and online platforms.

Naija247news understands that while some customers have expressed frustration with the new withdrawal limits, others are optimistic about the potential benefits of moving toward a cashless society. However, experts caution that the successful implementation of this policy will require significant improvements in digital infrastructure and broader public awareness of the advantages of cashless transactions.