The Central Bank of Nigeria (CBN) has identified the reduction of cost of cash management and incidences of crime as some benefits of its policy on cash withdrawal limits.
TheNewsGuru.com (TNG) reports Aisha Ahmad, CBN Deputy Governor in charge of Financial System Stability disclosed this on Thursday while briefing members of the House of Representatives on the apex bank’s Naira redesign and cashless policies.
Recall the apex bank in a statement on Dec. 6 indicated that beginning from Jan 9, 2023, the amounts individuals and corporate organisations could withdraw per week would not exceed N100,000 and N500,000, respectively.
The decision, however, received criticisms from a wide range of stakeholders, including members of the National Assembly, who urged the CBN Governor, Godwin Emefiele, to increase the withdrawal limits.
The House of Representatives had also invited Emefiele to make further clarifications on the policy to its members.
Ahmad, who represented the CBN Governor at the briefing, wooed the National Assembly to support CBN in its implementation of transformational payments and financial industry initiatives in line with the bank’s mandate.
Emefiele, through the Deputy Governor, said the CBN will continue to engage with the National Assembly on matters relating to monetary policy and the economy at large.
He commended the House of Representatives for its strong advocacy on behalf of the Nigerian people and pledged that new policies will not disenfranchise Nigerians in rural and underserved areas while reinstating commitment to the seamless implementation of the Naira Redesign and cashless policies.
Ahmad, on behalf of the CBN Governor, pledged the bank’s flexibility to make the necessary adjustments to ensure wider public acceptance of the bank’s policies while insisting it is apolitical and that the Naira redesign and reintroduced cashless policies are not targeted at any group.
“It is in the public interest to promote an efficient payment system via the cashless policy which helps reduce the punitive costs of cash processing,” Ahmad said, adding that the cashless policy does not prohibit cash transactions above the prescribed limit.
The CBN stressed that the cashless policy will boost economic opportunities for small businesses and rural communities to facilitate trade and improve livelihoods, thereby boosting economic growth.
TNG reports the apex bank has, however, announced an upward review of cash withdrawal limits to N500,000 and N5 million for individuals and corporate accounts respectively.