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CBN introduces new charges on cashless deposits and withdrawals.

The Central Bank of Nigeria (CBN) on Thursday released a circular on the cashless policy, reintroducing cash charges on deposits and withdrawals nationwide. The circular titled “Circular on Nationwide Implementation of cashless policy” revealed that the new charges are expected to take effect from 1st of April 2017. This comes days after the CBN introduced a new Forex policy.

“Please be informed that the Bankers Committee at its 493rd meeting, held on the 8th February 2017, reviewed the cashless policy charges on withdrawal and deposit and decided that the policy be extended to the 30 remaining states of the federation,” said the CBN.

In 2012, the CBN introduced a cashless policy programme, which was first introduced as a pilot scheme in Lagos. The policy stipulated a ‘cash handling charge’ on daily cash withdrawals that exceed 500,000 naira for individuals and 3,000,000 naira for corporate bodies. This was under the leadership of the leadership of the Emir of Kano, Sanusi Lamido. With the policy proven to be effective in Lagos, the CBN extended it to six other states; Kano, Rivers, Anambra, Abia, Ogun and Abuja, Nigeria’s capital city in 2013 and then in July 2014 it was rolled out nationwide.

In 2015, the Central Bank of Nigeria sent out a notice to all banks that began collecting charges on withdrawals above the threshold in the remaining 30 states. The banks were directed to put a hold on these charges until a directive is given by the CBN. Prior to the recent announcement, the individual withdrawal rate above 500,000 naira was three percent and corporates withdrawal rate was five percent.

SOURCE: Ventures Africa


Tags: Cbn  New Charges  Cashless Deposits  Withdrawals