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Cashless Policy: Strict Implementation Starts April – CBN

Barring any last minute change, the cashless policy of the Central Bank of Nigeria (CBN) is expected to go nationwide next April, with the implementation staggered for four month.

In a circular on the nationwide implementation of the policy sent to all the commercial banks on Thursday by the Director of Banking and Payments System Department of the CBN, Mr. Dipo Fatokun, the apex bank explained that the move was part of decisions reached at the last Bankers’ Committee meeting.

Fatokun said that the implementation of the policy would start in April with some selected states.It would continue in May, August and October with other states.

The circular read in part: “Please be informed that the Bankers’ Committee at the 493rdrd meeting held on February 8, 2017, reviewed the cashless policy charges on withdrawal and deposit and decided that the policy be extended to the remaining30 states of the federation.

“For the avoidance of doubt, the following decisions were taken at the meeting: Charges on deposits be reintroduced. Charges on deposits and withdrawals were reviewed and the new rates are indicated as follows:

As for individual, no charges on deposit and withdrawals that is less than N500,000.But N500,000 to N1million will attracts 1.5 per cent charge on deposit and 2 per cent on withdrawals. Above N1million to N5million attracts 2 per cent on deposit and and 3 per cent on withdrawals, while those who deposit or withdraw amount that is above N5 million would be charged 3 per cent on deposit and 7.5 per cent on withdrawal.

As for corporate bodies, there would be no charges on either the deposit or withdrawal of any amount less than N3million.But from that amount up to N10million carry 2 per cent charge on deposit and 5 per cent on  withdrawals.Any amount above N10 million to N40million, such corporate customer will be charged 3 per cent on deposit and 7.5 per cent on withdrawals.But above N40 million, 5 per cent will be charged on deposit and 10 per cent on withdrawals.”

The new charges would take effect from April 1, 2017 in the existing cashless states of Lagos, Ogun, Kano, Abia, Anambra, Rivers and FCT

The policy shall be implemented with the charges taking effect on May 1, 2017 in the following states:Bauch, Bayelsa, Delta,. Enugu, Gombe,Imo, Kaduna, Ondo, Osun and Plateau.

The policy shall be implemented with the charges taking effect on August 1, 2017 in Edo, Katsina, Jigawa,Niger, Oyo, Adamawa, Akwa Ibom, Ebonyi,m Taraba and Nasarawa.

“The policy shall be implemented with the charges on October1, 2017 in Borno, Benue, Ekiti, Cross River, Kebbi, Kogi, Kwara, Yobe, Sokoto and Zamfara.

The income generated from the processing fees charged above the allowable cash transaction limits shall be shared between the CBN and the banks in the ratio of 40 to 60. “Existing exemptions remain sustained

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