CBN Pegs Transfer Limits As E-Naira Takes Off October 1

The Central Bank of Nigeria (CBN) has set an initial transaction
limit of N50,000 for non- account preparatory to the take-off of
its digital currency set for October 1.

In a guide released by the apex bank to Deposit money banks, the
CBN stipulated a transaction limit for customers,
non-interest-bearing Central Bank Digital Currency (CBDC) status,
and an account value limit.

There are three levels to the CBN “Speed wallet” issued
primarily to meet the October 1, 2021, deadline.

As a means to transact value, the wallet doesn’t compete with
existing banks but is awaiting the creation of wallets by banks and
other innovators.

Tier one

With the first tier, Speed Wallet can be used by anyone who does
not have a bank account. However, users will have to submit a
passport photo, a name, birth date and place, a phone number, and
their address.

A N50,000 limit is in place for “Send & Receive”. The minimum
requirement is the individual’s National Identity Number (NIN),
which will be validated. A cumulative balance of N300,000 is fixed
each day.

Tier Two

An account with an existing bank is required for users of Tier
Two wallets.

The user is limited to sending and receiving N200,000 per day
with a Cumulative Balance of N500,000 daily. A Bank Verification
Number (BVN) is the minimum requirement for this level.

Tier Three

Tier three allows daily transactions of N1 million, with daily
cumulative balances of N5 million. In order to qualify, you need to
have at least a BVN.

Those who possess this merchant level can send or receive a
million naira daily. A merchant can move as much money as they want
into their bank accounts.

However, In context, the Central Bank further disclosed, neither
merchants nor customers using the wallet will be charged a fee.

The report stated that the e-Naira is a legal tender for the
entire country. It also mentioned that it will have
non-interest-bearing CBDC status, a transaction limit for
customers, and a value-based transaction limit.

The CBN also outlined that Nigerian banks will be allowed to
invite all their customers to register for the e-Naira.

“Besides pre-generated codes, the banks can send invitation
codes for onboarding to a specific list of selected customers.
Onboarding will be done for customers who have a code assigned by
their banks. The banks have already validated and verified these
customers.”

It further disclosed that the wallet provided by its institution
was merely a stop-gap measure for meeting the deadline, given that
banks and other licensed operators may provide their own wallets
since it didn’t intend to compete against the banks.

“As a National Critical Infrastructure, the e-naira system will
be subject to comprehensive security checks, all data and
personally identifiable information (PII) will be kept off the
ledger and will not be stored on the ledger,” the Apex bank
added.

In order to catalyse the adoption of e-Naira, banks will
facilitate onboarding and provide world-class customer service.

The Central Bank of Nigeria (CBN) has set an initial transaction
limit of N50,000 for non- account preparatory to the take-off of
its digital currency set for October 1.

In a guide released by the apex bank to Deposit money banks, the
CBN stipulated a transaction limit for customers,
non-interest-bearing Central Bank Digital Currency (CBDC) status,
and an account value limit.

There are three levels to the CBN “Speed wallet” issued
primarily to meet the October 1, 2021, deadline.

As a means to transact value, the wallet doesn’t compete with
existing banks but is awaiting the creation of wallets by banks and
other innovators.

Tier one

With the first tier, Speed Wallet can be used by anyone who does
not have a bank account. However, users will have to submit a
passport photo, a name, birth date and place, a phone number, and
their address.

A N50,000 limit is in place for “Send & Receive”. The minimum
requirement is the individual’s National Identity Number (NIN),
which will be validated. A cumulative balance of N300,000 is fixed
each day.

Tier Two

An account with an existing bank is required for users of Tier
Two wallets.

The user is limited to sending and receiving N200,000 per day
with a Cumulative Balance of N500,000 daily. A Bank Verification
Number (BVN) is the minimum requirement for this level.

Tier Three

Tier three allows daily transactions of N1 million, with daily
cumulative balances of N5 million. In order to qualify, you need to
have at least a BVN.

Those who possess this merchant level can send or receive a
million naira daily. A merchant can move as much money as they want
into their bank accounts.

However, In context, the Central Bank further disclosed, neither
merchants nor customers using the wallet will be charged a fee.

The report stated that the e-Naira is a legal tender for the
entire country. It also mentioned that it will have
non-interest-bearing CBDC status, a transaction limit for
customers, and a value-based transaction limit.

The CBN also outlined that Nigerian banks will be allowed to
invite all their customers to register for the e-Naira.

“Besides pre-generated codes, the banks can send invitation
codes for onboarding to a specific list of selected customers.
Onboarding will be done for customers who have a code assigned by
their banks. The banks have already validated and verified these
customers.”

It further disclosed that the wallet provided by its institution
was merely a stop-gap measure for meeting the deadline, given that
banks and other licensed operators may provide their own wallets
since it didn’t intend to compete against the banks.

“As a National Critical Infrastructure, the e-naira system will
be subject to comprehensive security checks, all data and
personally identifiable information (PII) will be kept off the
ledger and will not be stored on the ledger,” the Apex bank
added.

In order to catalyse the adoption of e-Naira, banks will
facilitate onboarding and provide world-class customer service.