CBN Suspends Extension Of Cashless Policy

Central Bank of Nigeria HQ Abuja

The Central Bank of Nigeria (CBN) has suspended the implementation of its cashless policy in more states in the country as announced earlier this year.

Daily Trust report continues:

The apex bank had said it was going national with the policy and extended its coverage to more states from the first five- Lagos, Ogun, Kano, Abia, Anambra, Rivers and the FCT.

The bank also directed banks to revert to the old charges and refund customers who had been debited. It had directed banks to charge 5 percent and 10 percent for deposits and withdrawals above N40m in the corporate category.

The CBN had fixed 1.5 percent and 2 percent for deposits ranging from ₦500,000 and ₦1million for individuals. 

It said yesterday in circular number; BPS/DIR/GEN/CIR/04/004 signed by the Director, Banking, & Payments System Department, Mr. Dipo Fatokun, that nationwide implementation of the policy had been suspended. 

It however retained the policy in the states earlier listed. 

 “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.”

“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 percent  processing fee for withdrawals above ₦500,000 in the individual category and 5 percent for withdrawals above ₦3 million,” it said.

“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,” it added.