CBN Reverses Cashless Policy

The Central Bank of Nigeria, CBN, on Friday announced the suspension of its earlier directive on the implementation of cashless policy issued after the 493rd bankers committee meeting that held on February 8.

In a circular signed by its Director, Banking and Payments System Department, Dipo Fatokun, the apex bank instructed banks to revert to old charges and refund customers who had been debited.
This is coming after it had earlier announced new charges on deposit and withdrawals above a threshold of N500,000.

CBN had directed banks to charge 5 per cent and 10 per cent for deposits and withdrawals above N40m in the corporate category, even as it fixed 1.5 per cent and 2 per cent for deposits ranging from N500,000 and N1 million in the individual category.

But in the circular issued on Friday, the apex bank said the existing policy before the announcement of the new policy shall remain in place in 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.

“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 circular read.

The old charges to be reverted to are 3 per cent processing fee for withdrawals above N500,000 in the individual category and 5 per cent 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,” the CBN stated.