The CBN’s cash withdrawal restriction rule is likely to speed banks’ migration to PAPSS systems.
The CBN limits weekly cash withdrawal across platforms to N500,000 and N5 million for individuals and corporations.
As more individuals use digital payments, banks will speed up their certification and integration for PAPSS migration.
The PAPSS started digital payments across the continent last year with FirstBank of Nigeria Plc and Ghana Commercial Bank.
The first transaction was completed by Nigeria Interbank Settlement System (NIBSS), PAPSS, Africa Export-Import Bank (Afreximbank), the African Union (AU), and the African Continental Free Trade Area (AfCFTA).
The sector study noted NIBSS enabled interoperability for PAPSS transactions.
The paper claimed PAPSS payment platform simplifies transactions by converting and enabling payment, clearing, and settlement for cross-border trade throughout Africa utilizing 41 recognized currencies.
African banking and payments systems adopted the PAPSS.
The paper added PAPSS is an Africa-wide payments and settlement platform.
It stated commercial banks, Fintechs, payment service providers, card schemes, and other payment industry participants may integrate using the NIBSS Instant Payment platform for intra-African trade and other economic activity.
The PAPSS allows rapid diaspora payments in local currencies between African marketplaces in over 41 currencies. It allows a client in one African nation to pay in their own currency while the beneficiary in another receives value in their own currency.
The paper said that PAPSS will minimize cross-border financial services transaction time and cost by reducing hard currency reliance and large unknown transaction delays.
“NIBSS will continue work with the DMBs who are undergoing certification, integration, and migration to the PAPSS to complete the requisite steps and initiate transactions soon,” it stated.
The CBN states that “under compelling situations when cash withdrawal exceeding the restrictions mentioned above is necessary for lawful purposes, such requests shall be subject to a processing charge of three per cent and five per cent for individuals and corporate organizations accordingly”.
The apex bank also prohibited over-the-counter payment of third-party cheques exceeding N100,000.
It further directed financial institutions to obtain valid identification of the payee (National ID, International Passport, or Driver’s License); Bank Verification Number (BVN) of the payee; Tax Identification Number (TIN) of both the payee and the payer from the customer; and upload same on the CBN portal created for the purpose if the limit is exceeded.
