Again, Access, Zenith, UBA, Other Banks Reduce Withdrawal Limits as Bankers Give Solutions

• Deposit Money Banks (DBMs) have further reduced their over-the-counter cash withdrawals
• The banks, which gave N10,000 per transaction earlier in the week, reduced the cash withdrawal to N5,000 and N2,000
• Also, Point-of-Sale (PoS) operators have increased their charges by 100% due to the current cash scarcity

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.

The ongoing cash scarcity has drastically changed as banks continued rationing cash in Automated Teller Machines (ATMs) and over-the-counter.

The development also led to Point-of-Sale (PoS) operators increasing their charges by 100%, citing the unavailability of cash at ATMs and banks.

PoS operators give reason for charges hike

According to the operators, they source their cash mostly from market traders and filling station attendants, who charge them exorbitantly for the money.

They cite the recent Electronic Money Transfer Levy (EMTL) imposed by the Nigerian government on fintech platforms as the reason for increasing their charges.

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Bankers speak on cash scarcity, give solutions as banks impose withdrawal limit

Meanwhile, deposit money banks have slashed their over-the-counter withdrawal from N10,000 per transaction to N5,000 and N2,000, depending on the bank.

Banks ration N2,000 over the counter

Findings reveal that banks took drastic measures when they ran out of cash, blaming the Central Bank of Nigeria (CBN) for the cash crunch.

At the First Bank branch in the Opebi area of Lagos, customers decried their inability to withdraw cash across the counter as the bank said they could only give N5,000 per transaction.

An official of the bank disclosed anonymously that the situation is very dire as they have been unable to get cash supplies from the CBN in the last couple of days.

“We don’t know the game the CBN is playing with the banks. On one hand, CBN is asking customers to report banks without cash in their ATMs and on the other hand, they are refusing to release the cash. So, who is to blame?” he said.

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Access, Zenith, other banks impose new cash withdrawal limits as scarcity worsens

Also, at the Access Bank along Opebi Road, Ikeja, bank tellers were heard telling customers that they could only get N2,000 per transaction while the ATMs were virtually empty.

Sources at the bank said they have exhausted their cash and had to resort to rationing so their customers don’t get frustrated.

Two weeks ago, CBN released phone numbers for Nigerians to report banks without cash in their ATMs while mandating that financial institutions provide money to customers as the festive season nears.

Bankers give solution to cash scarcity

Legit.ng earlier reported that the Association of Senior Staff of Banks, Insurance, and Financial Institutions (ASBIFI) said the CBN's inability to provide cash for commercial banks was responsible for the scarcity.

The association's president, Olusoji Oluwole, stressed the negative effects of the scarcity as the festive period nears,

Proofread by Kola Muhammed, journalist and copyeditor at Legit.ng

Source: Legit.ng