Nairametrics| The Central Bank Of Nigeria (CBN) today released a circular revising its cash-less policy. The policy becomes effective from the 1st of April 2017.

Here are the new charges;

These are some of the highlights of the new policy

  • Charges on deposits above 500,000 naira have been reintroduced.
  • Charges on deposits and withdrawals for individual and corporate accounts have been revised.
  • The policy will take effect from the 1st of April with the existing cashless states ( Lagos, Ogun, Kano, Abia, Anambra, Rivers and the FCT)
  •  The revised policy will then kick in across other states in the federation between May and October 2017.
  • Income generated from the processing fees shall be shared in the ratio 40/60 between the CBN and commercial banks
  • Existing exemptions exist for the following categories:
  • Revenue generating accounts of the federal, state and local government (lodgements only).
    Embassies, diplomatic missions, multilateral and Aid donor agencies are exempted from all processing fees relating to the cash-less policy implementation.

The CBN introduced the cash-less policy in 2012 under the leadership of HRH Emir Sanusi Lamido Sanusi and rolled it across all states of the Federation on July 1 2014. Withdrawal rates for about above N500k was 3% and 5% for individuals and corporates respectively. The charges are only paid for cash withdrawals above N500k.

Expect, a message from your bank anytime soon. 

Here is a link to the policy.

Onome Ohwovoriole has a degree in Economics and Statistics from the University of Benin and prior to joining Nairametrics in December 2016 as Lead Analyst had stints in Publishing, Automobile Services, Entertainment and Leadership Training. He covers companies in the Nigerian corporate space, especially those listed on the Nigerian Stock Exchange (NSE). He also has a keen interest in new frontiers like Cryptocurrencies and Fintech. In his spare time he loves to read books on finance, fiction as well as keep up with happenings in the world of international diplomacy.

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