7 June 2014

Nigeria: Cashless Policy Begins Nationwide July 1

Lagos — Central Bank of Nigeria (CBN) has said that the cashless programme would formally take effect in the remaining states of the federation from July 1.

The apex bank had in January 2012 rolled out a pilot scheme of the programme in Lagos state. This was followed by Federal Capital Territory (FCT), Rivers and Anambra states.

The CBN in a memo to the money deposit banks signed by the director banking and payment system department, Dipo Fatokun, urged the retail banks tocommence enlightenment of their customers on the policy in the remaining31 states on the existing limits on cash withdrawals and deposits forindividuals and corporate bodies as well as the available e-paymentoptions.

It further directed that bank staff in the affected states should be

trained on the policy in order to provide answers to enquiries, give useful advice and handle issues and complaints on the policy.

The CBN also advised banks to engage their key customers and other stakeholders on the importance of the policy.

Before now some banks had notified their customers on the charges on both cash withdrawals and deposits.

Individual daily cash withdrawals or cash deposits that exceed N500,000will attract a 2 per cent charge on the excess, 3 per cent charges onthe excess withdrawal. As for the corporate institutions' withdrawal anddeposit above N3 million will attract 3 per cent on the excess and 5 percent on the excess withdrawal.

The new policy is designed to reduce the amount of physical cash (coins and notes) circulating inthe economy, and encourage more electronic-based transactions(payments for goods, services and transfers.

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