In a move to ease cash availability, Deposit Money Banks in the Federal Capital Territory have raised their maximum over-the-counter withdrawal limit to ₦50,000 per day. This marks a significant increase from the previous ₦5,000 cap enforced last month, according to recent findings.
A survey revealed that banks such as Guaranty Trust Bank (GTBank) and Zenith Bank have implemented the new withdrawal limit, which is accompanied by an Automated Teller Machine (ATM) withdrawal cap of ₦20,000.
Banks Justify Higher Limits
At a GTBank branch along Airport Road, bank officials confirmed the higher withdrawal limits, citing improved cash availability as the reason for the policy change.
“We now have more cash and that is why we are giving out more money. Simple,” a bank official told reporters.
Impact on Point of Sale (POS) Operators
Despite the increased cash supply, Point of Sale (POS) operators have stated that the new withdrawal limits are unlikely to reduce their service charges.
Currently, POS agents charge ₦800 for withdrawals of ₦20,000 and ₦2,000 for ₦50,000. Operators argue that only a consistent and stable cash supply will lead to lower fees.
Faith, a POS operator, explained, “How will I reduce my charges because banks are now giving ₦50,000? Let it be stable first, then it would reduce.”
Implications for Cash Flow
The adjustment by banks reflects efforts to improve liquidity and meet customer needs as cash shortages ease. However, the long-term impact on the cash-based economy and service providers such as POS agents remains uncertain.
This development underscores the importance of cash supply stability in shaping financial services and customer experiences.
