Article
By Alex C
The 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, 2014. 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.
In a memo to the money deposit banks signed by the director banking and payment system department, Dipo Fatokun, the CBN urged retail banks to commence enlightenment of their clientele on the policy in the remaining 31 states on existing limits on cash withdrawals and deposits for individuals and corporate bodies as well as available e-payment options.
It further directed that bank staff in 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 Apex bank also advised banks to engage their clientele and other stakeholders on the importance of the policy.
Until 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, 000 will attract a penalty of 2 percent charge on excess deposit and 3 percent charges on excess withdrawal
As for corporate institutions’ withdrawal and deposit above N3 million, it will attract a penalty of 3 percent on the excess deposit and 5 percent on 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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