cbn cash withdrawal limit and cash redesign

CBN cash withdrawal limit and cash redesign how it affects you as an individual and business owner 

CBN cash withdrawal limit and cash redesign how it affects you as an individual and business owner 

CBN cash redesign and cash withdrawal limit. What does it mean, how much can you withdrawal at the atm and inside the bank as individual and business, what are the extra charges, How many times can you withdraw cash from ATM in a day?  And what is the maximum cash withdrawal from bank in nigeria. How does this affect you as individual and a business owner and most importantly, what can you do to stay ahead of the game. I will be providing anser to all these and more in this write up 

Here is everything you need to know about the cbn cash withdrawal limit and redesign.

There are two things happening at the same time.

1. Cash redesign, the central bank is redesigning the 200, 500 and 1000 naira notes and no one will accept the old note starting from January 31st 

2, the cash withdrawal limit which means by January 9th, 2023, you will only be able to withdraw N100,000 per week from your bank account as an individual and N500,000 per week as a business, if you have a registered business account. If you wish to withdraw more than that, you can only do that by entering the bank and it will cost you 5% of the amount you want to withdraw as an individual that is, let’s say you want to withdraw N300,000 as an individual, that is N200,000 more than your weekly limit so you will be charged 5% of N200,000 which is the extra that is on top of your normal N100,000 limit in this case, you will be charged N10,000 for the withdrawal of N300,000 and 10% of the extra amount as a business the same explanation applies. 

How many times can you withdraw cash from ATM in a day?

With a single atm card, you can only withdraw as many times as possible as long as you are below your withdrawal limit amount 

But what are other options you have to withdraw cash during this period if you need more money 

–POS agents- this will cost you more money between 3 to 5 times the current cost as the pos agent will also incur extra costs in getting cash. For example, if you want to withdraw N5000 at a pos stand today it cost an average of N100 but by the time this policy will take effect, it will cost between N300 and N500 

==Using multiple bank accounts, which will also cost you money money 

==making use of transfer, QR, and other form of digital payments is the easiest option and what the CBN is trying to promote 

How do the CBN cash withdrawal limit and cash redesign affect you as a business owner and what can you do to stay ahead 

==Increase in the cost of some products because most suppliers will be buying with a cost which will now come at extra cost, they will be passing the cost down to you as a business (explain)

Customers will start requesting for alternative forms of payment (explain)

==Tax remittance (explain) make sure you separate your personal account from your business account to avoid overpaying tax 

Here are My recommendations for you as a business owner 

1. Start using more of alternative payment like POS if you don’t have a POS yet, you can easily get one within a day or reach me on 08137820379

2. and have a bank account that can accept transfers with the mobile app where you can confirm each payment. If the limit on your account is low, now is the best time to increase it. Since most people will be using digital payments, most scammers will try to use fake alert and other forms of digital scams to defraud people. One way to protect your business is to have the mobile app of your bank and always confirm any transfer transaction on it, not sms alert, before paying any customer.

3. Train your employees: Make sure your employees are familiar with the new currency and how to handle transactions involving it. This can help prevent fraud, and mistakes and ensure the smooth operation of your business 

4. Adjust your prices: it’s common to see price change by the hour during periods like this. So be ready to adjust your prices to reflect the new currency value. This can help you remain competitive and maintain your profit margins.

5. Communicate with your customers: Inform your customers about the currency redesign and any changes to your pricing or payment methods. This can help prevent confusion and maintain customer trust.

6. Stay informed: Keep up to date on the latest developments and changes related to the currency redesign. This can help you understand the implications and plan accordingly. Make sure you subscribe to this channel as i will be posting updates from time to time 

How does the CBN cash withdrawal limit and cash redesign affect you as an individual and what can you do to stay ahead 

–If you are a salaried worker, it is most likely that your employee will start paying you via bank transfer (make sure your account is active and can accommodate the amount. This is a good time to increase the limit on your bank account and if possible get the mobile app)

==More tax and tariffs on each transaction like stamp duty (explain)

Here are My recommendations for you as an individual 

–Be familiar with the new currency. As some people might attempt to dye the old currency just to make it look like the new one. One pro tip always check the date as the new currency will have 2022 date and above while the old currency will have previous years, most likely. 

==avoid giving strangers your account details. As most people will start using others account to commit crime. They will offer you huge commission, dont do it

cbn cash withdrawal limit and cash redesign. What should you expect? 

==Scammers will take advantage of this in many ways 

For example 

they might attempt to dye the old currency just to make it look like the new one. One pro tip always check the date as the new currency will have 2022 date and above while the old currency will have previous years, most likely. 

 Also since most people will be using digital payments, most scammers will try to use fake alert and other forms of digital scams to defraud people. One way to protect yourself and your business is to have the mobile app of your bank and always confirm any transfer transaction on it, not sms alert, before paying any customer. 

==People will start using the account of their relatives to transact 

==Server downtime from banks as their network might not be built to carry the incoming volume 

==Increase in the cost of getting cash between 3 to 5 times the current cost. For example if you want to withdraw N5000 at a pos stand today it cost an average of N100 but by the time this policy will take effect, it will cost between N300 and N500 as POS agents will be incurring heavy cost which will be transferred to the customers 

In conclusion, the CBN cash withdrawal limit and cash redesign are significant changes that will affect individuals and businesses in Nigeria. The cash withdrawal limit means that individuals will only be able to withdraw N100,000 per week from their bank account, while businesses will be able to withdraw N500,000 per week. If you need to withdraw more than these amounts, you will need to enter the bank and pay extra charges. The cash redesign means that the 200, 500, and 1000 naira notes will be redesigned, and the old notes will no longer be accepted after January 31st.

As a business owner, there are several things you can do to stay ahead of the game during this period. You can start using alternative forms of payment, such as POS, to avoid the extra charges associated with the cash withdrawal limit. You can also train your employees on how to handle transactions involving the new currency and adjust your prices to reflect the new value of the currency. Finally, it’s important to communicate with your customers and inform them of the changes and how they can continue to do business with you. By taking these steps, you can help ensure the smooth operation of your business during this period of change.

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