Breaking News: Banks Limit Cash Availability Amid Escalating Shortage Of Naira

Bank customers faced heightened distress on account of the ongoing cash shortage as more financial institutions implemented cash withdrawal limits, while Point of Sale (PoS) operators increased transaction fees by 100 percent. In a response to the escalating situation, the Central Bank of Nigeria (CBN) suspended charges for cash withdrawals exceeding regulatory limits until April 30th of the following year…….CONTINUE READING

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In an official circular titled ‘Re-Processing Fees on Cash Deposit,’ Dr. Adetona Adedeji, the acting Director of Banking Supervision at the CBN, announced the immediate suspension of the two percent and three percent processing fees on cash deposits exceeding N500,000 for individuals and N3,000,000 for corporate accounts. The directive emphasized that the suspension would remain in effect until April 30, 2024, and urged all CBN-regulated financial institutions to accept cash deposits from the public without imposing charges.

Visits to bank branches in Lagos and Abuja by Vanguard revealed that customers encountered difficulties accessing cash, with ATMs in many branches failing to dispense money, and banks enforcing limits on cash withdrawals to manage the available funds. The investigation suggested a shortage of cash supplied to the banks by the apex bank, prompting reductions in disbursements through both Automated Teller Machines (ATMs) and Over-the-Counter services.

Similar to the cash scarcity experienced at the beginning of the year, banks adopted a strategy of prioritizing customers with accounts while rationing available cash to serve as many customers as possible. Some banks maintained a daily withdrawal limit of N100,000 in tranches of N20,000 through ATMs, while others further reduced the amounts dispensed through these machines. Additionally, Point of Sale (PoS) agents confirmed difficulties in obtaining requested cash amounts from banks over the past month, contributing to the overall challenge in accessing physical currency.

Source: Bushradiogist