Nigeria’s ATM Withdrawal Limit Is $45 A Day To Promote The Use Of CBDC

To encourage the usage of the eNaira, Nigeria has dramatically curtailed the amount of currency that people and businesses can withdraw.

Haruna Mustafa, director of banking supervision, announced the modifications and noted:

“Customers should be encouraged to use alternative channels (Internet banking, mobile banking apps, USSD, cards/POS, eNaira, etc.) to conduct their banking transactions.”

In a December 6 circular, the Central Bank of Nigeria stated that individuals and businesses would now be restricted to withdrawing no more than $45 (20,000 nairas) daily and $225 (100,000 nairas) every week from ATMs.

Before the announcement, the daily cash withdrawal caps for individuals were $338 (150,000 nairas), and for enterprises, they were $1,128 (500,000 nairas).

Additionally, there will be a weekly withdrawal cap for both people and businesses of $225 (100,000 nairas) and $1,125 (500,000 nairas), respectively. Any monies taken out more than those restrictions would incur a 5% fee for individuals and a 10% cost for businesses.

The daily cap for cash withdrawals from point-of-sale terminals is also $45 (20,000 nairas).

The limits are cumulative for each withdrawal, so someone who withdraws $45 from an ATM on the same day and then tries to withdraw money from a bank will be charged a 5% service fee.

Since its inception on October 25, 2021, adoption rates for the eNaira – Nigeria’s central bank digital currency (CBDC) – have remained poor. The Central Bank of Nigeria has failed to persuade its citizens to utilize the CBDC, with fewer than 0.5% of the population using the eNaira as of October 25, a year after its introduction.

On October 26, Nigeria’s central bank Governor, Godwin Emefiele, stated that 85% of all Naira in circulation was stored outside of banks and that, as a result, the central bank will be reissuing fresh banknotes to accelerate the transition toward digital payments.

Nigeria implemented its “cash-less” policy in 2012, implying that moving away from physical currency would increase the efficiency of its payment system, lower the cost of banking services, and improve the efficacy of its monetary policy.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join us to keep track of news: https://linktr.ee/coincu

Website: coincu.com

Harold

Coincu News