Hello friends, as you know by now the Central Bank of Nigeria has placed a limit on the amount that can be withdrawn from both ATM and POS Terminals. Let's take a closer look at this directive and what it means for you.
Overview of the Central Bank of Nigeria Withdrawal Limit
The Central Bank of Nigeria has placed a limit on the amount that can be withdrawn from Automated Teller Machines (ATMs) and Point-of-sale (POS) terminals.
The limit is ₦20,000 ($45) per day for both individual and corporate customers using ATM and POS. This limit is effective as of January 2023.
This means that customers can only withdraw a maximum of 20,000 ($45) per day from both ATM and POS terminals. However, customers are still allowed to make withdrawals over the counter with a limit of #100,000 ($225) for individuals and #500,000 ($1,124) for corporations per week.
What Are the Limits on ATM and POS Transactions?
The Central Bank of Nigeria has placed a limit on the amount that can be withdrawn from both ATM and POS terminals.
This limit is currently set at #20,000 ($45) per day, with a cumulative limit of ₦500,000 ($1,124) per month. This limit is for both individuals and businesses and it’s expected to take effect by January 2023.
The Central Bank of Nigeria also said that about 9 ATMs will no longer dispense #1,000 ($2.2) and #500 ($1.1) but from #200 ($044) and lower denominations
These limits were put in place in order to reduce the amount of cash in circulation and to encourage the use of electronic payments.
What Necessitated the Central Bank of Nigeria's Decision to Limit Withdrawals?
The bank says that this decision was necessary in order to "plug financial leakages" and protect the naira. Some Nigerians, however, see this limit as yet another way for the government to control and restrict their access to money.
What do you think? Was the Central Bank of Nigeria right to institute this limit? Or is this just another way for the government to control its citizens?
How Will This Affect Businesses and Customers?
The new Central Bank of Nigeria (CBN) limit on ATM and Point-of-sale (POS) withdrawal will likely affect businesses and customers in a number of ways.
For businesses, the most immediate concern will be cash flow. With a limit on how much cash can be withdrawn from ATMs and POS terminals, businesses will need to find alternative ways to get the cash they need to keep operations running smoothly. This could mean arranging for cash deliveries or taking out loans.
For customers, the limit on ATM and POS withdrawals could cause some inconvenience, especially if they're not aware of it ahead of time. If you typically withdraw a large amount of cash at once, you'll need to plan accordingly and withdraw smaller amounts more often. Alternatively, you can use your debit card for purchases instead of cash.
What Strategies Can Be Used to Reduce the Impact of These Limits?
There are a few different strategies that you can use to reduce the impact of the Central Bank of Nigeria's limits on ATM and POS withdrawals.
First, try to withdraw larger amounts of cash less often. This will help you to avoid fees associated with multiple withdrawals.
Second, use your credit or debit card for purchases instead of cash. This way, you can still access your money without having to withdraw it from an ATM or POS terminal.
Finally, consider using a prepaid debit card. This can be a great way to access your money without having to worry about limits on withdrawals.