Cashless Policy (Nigeria)
Cashless policy is a policy established in the year 2012 by the Central Bank of Nigeria to curb excesses in the handling of cash in Nigeria. It prescribed a cash handling charges on daily withdrawal above Five Hundred Thousand Naira (N500, 000.00) for individuals and Three Million Naira for Corporate Bodies (N3, 000,000.00). The policy was enforced not to eliminate the use of cash but to reduce the volume of cash in circulation.[1]
The operation of the policy
The pilot run of the policy started on the 1 January 2012 in Lagos State. The service charges were with held till 30 March of the same year to allow for seamless migration from the manual to electronic devices. The second stage of the pilot run started in Rivers , Anambra, Abia, Kano State, Ogun and the Federal Capital Territory on 1 July 2013 while the program nationwide gospel started exactly a year after, 31 July 2014.[2][3]
The key notes of the policy
- Withdrawal above N150, 000.00 on all Third Party Cheques can only receive value through Clearing House and not across the counter.
- Under this policy Bank no longer permitted to pick up cash services from merchants, while only the Licensed Cash in Transit Companies were permitted.
- 3% Cumulative charges are administer on on daily cumulative withdrawal in excess of N500,000.00 for individual while 5% cumulative charges are administer on daily cumulative withdrawal in excess of N3,000.000.00
- The Charges on this transaction is borne by the account holder.
References
- ↑ godwin emefiele ,cbn governor. "ensuring success cashless policy nigeria". daily independence nigeria. Archived from the original on 4 October 2015. Retrieved 4 October 2015.
- ↑ "cashless policy cbn directs banks to refund charges in 30states". thisday live. Archived from the original on 7 October 2015. Retrieved 4 October 2015.
- ↑ "cbn puts nationwide cashless policy on hold". business day online. Retrieved 4 October 2015.