Customers of Deposit Money Banks, DMBs, may be faced with a new across-the counter cash withdrawal limit to be pegged at N10, 000. It was learned,weekend, that the DMBs, under the aegis of the Bankers Committee, have already approached the Central Bank of Nigeria, CBN, to propose the limit.

Sources said the measure being contemplated would drastically reduce the number of customers that would need to physically visit banking halls for transactions.

The DMBs, sources said, wanted to achieve two objectives via this strategy, if approved by the CBN. The objectives include greater use of electronic banking and smaller workforce – as a means of cutting cost of operations. Already, some banks had laid off many workers, citing operational losses, especially as the Federal Government Treasury Single Account Policy, TSA, has deprived them of federal government deposits.

It took the intervention of the Federal Government, which even had to threaten banks with severe sanctions, including the withdrawal of their licences, to pull back on the gale of mass sack. A ‘State of the Economy’ document of the apex bank presented to the Bankers’ Committee in Abuja, last Thursday, showed that unaudited Profit Before Tax of banks for the period ended April 2016 indicated a decrease from N222 billion in April last year to N198 billion, representing a 10.8 per cent or N24 billion decrease.

“The decline was driven largely by a decrease in both interest and non-interests income which decline by 6 per cent or N50 billion and 54 per cent of N259 billion, respectively,” the document read.

It explained that the banking sector was still faced with a lot of pressure points, some of which it listed as resurgence of inflationary pressures in the face of negative output growth, continuing low oil prices, and lack of fiscal buffers.

In addition, the apex bank said capital flow reversals, rising pressure on exchange rate in the face of declining external reserves, huge growth in credit to the government to compensate for declining oil receipts were other major challenges confronting the industry.

http://www.financialwatchngr.com/2016/06/13/banks-move-limit-counter-withdrawals-n10000/

Horrible.

Buhari has finally destroyed the most robust economy in Africa just within one year. Some people will come now and say former administration is the cause. But in the history of Nigeria, there are times we had no foreign reserve and the sell of crude oil was as low as $35 dollars per barrel, yet banks did not regulate the amount of cash an individual could withdraw. May Nigeria never go Greece way. If you do not understand, the banks are indirectly saying 'there is no money' because people are withdrawing cash from their accounts in order to buy dollars from the black markets . Now, banks have no dollars to sell and they have no cash to give you.

[size=14pt]I am just enjoying how Buhari has been scattering Nigeria in the name of sham change.

Ibrahim Babangida once said he regretted annulment of June 12th because it made a major group feel unwanted as Nigerians.

Muhammad Buhari's stock in trade is seeking out vicious strategies to alienate and marginalize whole sections of Nigerians.

I am just watching him in HD to see how he ends. Buhari's regime and utterances will eventually enter history as "How to destroy a nation with unguarded bigotry"[/size]

This will only work if the banks fulfil the following conditions.
1. Install more ATM's
2. Constantly load the ATM with cash so that it doesn't run out.
3. The network on the ATM must NEVER go offline.
4. The network for internet banking must never go offline.
5. Further reduce charges for using another banks ATM
6. Increase the ATM daily withdrawal limit to above N1 Million (beware of robbers sha)

MRSALT:
Buhari has finally destroyed the most robust economy in Africa just within one year. Some people will come now and say former administration is the cause. But in the history of Nigeria, there are times we had no foreign reserve and the sell of crude oil was as low as $35 dollars per barrel, yet banks did not regulate the amount of cash an individual could withdraw. May Nigeria never go Greece way. If you do not understand, the banks are indirectly saying 'there is no money' because people are withdrawing cash from their accounts in order to buy dollars from the black markets . Now, banks have no dollars to sell and they have no cash to give you.

is Buhari a member of bankers committee. Why do you not read bfor you comment. It was in the first two lines. You cannot possibly be that lazy

mikolo80:
is Buhari a member of bankers committee. Why do you not read bfor you comment. It was in the first two lines. You cannot be possibly that lazy

word!

This is not well thought of.. Nigeria is not technologically ready to run a full-scale cashless environment.
Many traders don't even know what the POS is

e don dey clear for those money laundering institutions eye. no more cash to siphon for the corrupt few again. this is just not going to work, 10k for what? people will now be keeping money at home which will make the men of the night resume their activity.

Abeg o, na space I just book for here

No big deal. I recall when l went to my bank in Nairobi (Barclays) to withdraw, the lady across the counter was kind enough to remind me that l will be charged an equivalent of $6 for over the counter withdrawal, $6 that will get me 10 litres of milk! I had to go to the ATM.

Kibosh!

Lubbish!

WHY

Banks are too profit oriented that they can sack all their workers just to make profit

Survival strategy...

Is my Birthday today.....

Show me some likes please Nairalanders

So what's the essence of putting your money in the bank when you can't get the much amount you need, whenever you need it?

wapu:


Over the counter withdrawals.
They want customers to use the atm and e channels to reduce the population of customers that come into the bank to withdraw money.
This is the is really good and safer for everyone.
Why do people even hold so much Cash when you can transfer with ease

Oh really? So it's safer to withdraw at ATM points than over the counter? I strongly disagree.


Besides, the real reason why they want to compel customers to withdraw from ATM is because of the charges on ATM withdrawals. The banks will make more charges on frequent ATM usage.

Unbelievable! And what are they doing with all the "chinko" ATM machines that they have in all their banks? What are they doing concerning loading just one out of eight ATM machines at their banks?

Banks are taking more peace out of their customers in this country and government seem not to be doing anything about it.

mikolo80:
is Buhari a member of bankers committee. Why do you not read bfor you comment. It was in the first two lines. You cannot possibly be that lazy

Let's blame Gej then.

Following

That is a way to technically reduce staff number.

hisgrace090:
Horrible.

Horrible There are many platforms to perform transactions today...I think they want Nigerians to embrace cashless policy to the fullest

Yeye dey smell

Na them

Interesting

I know Buhari has not performed up to expectations and as a matter of fact, I have flogged the APC on countless topics, but this move by banks is a no-no!

Instead of banks to start getting edgy because of FX scarcity and the state of the economy, they should start getting more innovative. What are those things that can be done to reduce the rate of withdrawals? How can they corner the BDC business from the Abokis they have relied on for so long? How can they utilize the readily available workforce in a productive way to improve the customer base? These are the vital questions they need to ask themselves. . .

One of the issues of the Nigerian business environment is lack of innovation. The same banks are too scared to give out loans without collateral, thus limiting the amount of investments they have in the people and their own profit.

Instead of running around trying to reduce the rate at which people withdraw, let them try to increase the rate at which people deposit.

Nobody ever won a fight by dodging punches, you win by throwing stronger ones.

mikolo80:
is Buhari a member of bankers committee. Why do you not read bfor you comment. It was in the first two lines. You cannot possibly be that lazy

His policies, actions & inactions are at the root cause of the economic implosion. The dullard is responsible!