In a bid to address ongoing cash accessibility issues, Deposit Money Banks (DMBs) in the Federal Capital Territory have raised their maximum over-the-counter withdrawal limit to N50,000 per day. This adjustment follows a significant increase from the previous N5,000 limit set just last month.
The change comes as part of efforts to improve cash flow at various branches, with banks such as Guaranty Trust Bank (GTBank) and Zenith Bank taking the lead. This development marks a significant shift in the banking landscape, with customers now able to access a much higher daily withdrawal limit than before.
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Details of the New Withdrawal Limit
A survey conducted by The PUNCH on Tuesday revealed that several banks, including GTBank, have adjusted their withdrawal limits in response to improved cash availability. At a GTBank branch located along the airport road, customers were permitted to withdraw up to N50,000 over the counter. However, ATM withdrawals remained limited to N20,000 per transaction.
An official from the bank confirmed the reason behind the adjustment: “We now have more cash, and that is why we are giving out more money. Simple.” This statement underlines the improving cash flow situation at these banks, providing some relief to customers previously affected by lower withdrawal limits.
Impact on Point of Sale (POS) Operators
While the increase in withdrawal limits has been welcomed by many, Point of Sale (POS) operators have made it clear that this change will not result in a reduction of service charges. Currently, POS operators charge N800 for a withdrawal of N20,000 and N2,000 for a withdrawal of N50,000.
Faith, a POS operator, explained that the steady availability of cash, rather than a one-time policy change by the banks, would be the key to reducing service charges. “How will I reduce my charges because banks are now giving N50,000? Let it be stable first, then it would reduce,” Faith remarked.
CBN’s Role in Ensuring Cash Availability
Meanwhile, the Central Bank of Nigeria (CBN) Governor, Olayemi Cardoso, has urged customers to report any difficulties in accessing cash at bank branches or ATMs. Cardoso made the appeal during the 2024 annual bankers’ dinner in Lagos, organized by the Chartered Institute of Bankers of Nigeria (CIBN).
He encouraged Nigerians to report such issues through designated phone numbers and email addresses for their respective states, ensuring that the CBN is aware of any challenges customers face.
Furthermore, a CBN official emphasized that any bank found hoarding cash during inspections would face severe penalties. “Teams from the bank will embark on on-the-spot checks from Sunday, December 1, 2024. Any bank found hoarding cash will be severely sanctioned,” the official stated.
What This Means for Nigerians
This increased withdrawal limit is a step toward alleviating the cash crunch that has plagued Nigeria in recent months. While it offers immediate relief to customers who had been restricted to small amounts, the larger question remains whether the banking sector can maintain this improved cash flow. The CBN’s efforts to monitor banks and ensure the consistent release of cash will play a crucial role in stabilizing the situation.
For now, Nigerians are advised to take advantage of the raised withdrawal limits and report any banking irregularities to help maintain transparency in the system.
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