[su_heading size=”18″ align=”left”]The Central Bank of Nigeria has commenced Cashless Nigeria as part of a national ambition to be one of the best 20 economies before the year 2020. CBN informed the world that Nigeria would commence the process of changing to a cashless economy by January 2012. “The main reason for the policy was to reduce the amount of Naira notes and coins (cash) used for business but not to eliminate cash usage”, says the nation’s apex bank which also addressed some 50+ questions you may have about Cashless Nigeria below:[/su_heading]
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Mr. Godwin Emefiele, Governor of the Central Bank of Nigeria (CBN)
What is the CBN cash policy?
The CBN cash policy requires a daily total limit of N500, 000 and N3, 000,000 on free cash withdrawals across all accounts owned by individual and corporate customers respectively. Individuals and corporate organizations that make cash withdrawals above the limits will be charged a service fee for amounts above the cumulative limits;
Furthermore, 3rd party cheques above N150, 000 shall not be eligible for payment over the counter with effect from March 30, 2012. Value for such cheques shall be received only through the clearing house.
Banks will discontinue cash in transit deposit services rendered to merchant-customers with effect from January 1, 2012.
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Why is CBN introducing the cash policy? What are the benefits of the new policy?
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To increase convenience/access to payment (more payment options).
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To enable more transparency in payment systems, and allow for more effective monetary policy.
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To reduce risk of robbery.
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To reduce huge cost associated with cash handling (printing, storing, processing, distributing, etc).
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To enable the achievement of the nation’s vision 2020 objective.
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Does the cash policy mean there will not be cash in circulation or people are not allowed to use cash?
No. There will still be cash in circulation. The cash policy aims at reducing the use of cash while increasing the use of alternative forms of payment.
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When is the cash policy taking effect? The cash policy started on January 1, 2012 in Lagos as pilot.
Phase 2 went live in Abia, Anambra, Rivers, Ogun, Kano and the FCT on July 1, 2013. Nationwide implementation of the policy will commence in 2015.
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Does the cash policy mean bank customers won’t have access to their money? Are there any restrictions on the amount of cash customers can pay in or withdraw? As an account holder can I withdraw more than N150,000 over the counter?
No! The cash policy allows you to withdraw/deposit any amount of money from/to your account. However, if a withdrawal of cash is done above the daily free total limit of N500, 000 and N3 million across all accounts owned by individuals and corporate organizations respectively, you will be charged a service fee only on amounts above the cumulative limits.
The policy does not restrict the amount of cash that an individual can withdraw. It only says that they will have to pay service fees on the excess cash.
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When did the charges begin?
The charges on cash withdrawal above the set limit began on March 30, 2012 in Lagos, October 1, 2013 in Abia, Anambra, Ogun, Rivers, Kano and the F.C.T.
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How much will I be charged when I withdraw cash above the limit?
You will be charged 3% of the amount withdrawn as an individual or 5% as a corporate organization over the limit.
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Will the charges be applied per transaction, daily or monthly?
Charges will be applied daily, since it requires the total daily amounts above the limit.
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If I withdraw N550,000 which is above the limit how will I be charged?
You will be charged the processing fee on N50,000.00 only.
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Who owns the processing fee? CBN or banks?
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