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CBN Suspends Nationwide Implementation Of Cashless Policy

CBN Suspends Nationwide Implementation Of Cashless Policy

The Central Bank of Nigeria, CBN, has suspended nationwide implementation of the cashless policy which places a restriction on the amount of cash one can withdraw or deposit.

This was contained in a circular issued on Friday, by CBN’s director of banking and payments department system.

The circular instructed banks to revert to old charges and refund customers who had been debited.

Recall that the CBN had earlier announced new charges on deposit and withdrawals above a threshold of N500,000.

Banks were directed to charge 1.5 percent and 2 percent for deposits ranging from N500,000 and N1 million by individuals, while as much as 5 percent and 10 percent will be charged for deposits and withdrawals above N40 million by corporate bodies.

However, the apex bank, in Friday’s circular urged banks to revert to the existing policy before the announcement of the new policy.

The initial policy states that the cashless policy is operational only in 6 states of the federation and the Federal Capital Territory, FCT.

The states include: Lagos, Ogun, Kano, Abia, Anambra, Rivers and Abuja.

“You will recall that a directive was issued on the nationwide implementation of the cashless policy vide our circulars with reference numbers BPS/DIR/GEN/CIR/04/001 dated February 21 and BPS/DIR/GEN/CIR/04/002 dated March 16,” the circular stated.

“Please note that the new withdrawal and deposit processing fee charges above the threshold, as contained in the circulars referenced above, are hereby suspended until further notice.

“The position of the policy shall now revert to the status quo ante.“The old charges to be reverted to 3% processing fee for withdrawals above N500,000 in the individual category and 5% for withdrawals above N3 million.

“The new policy already applied effective April 1, 2017 as contained in the circulars in reference above should be reversed and the old charges be applied.

“All necessary refunds should be made accordingly.”

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