Lagos - With the increase of the Cash Reserve Requirement (CRR) on public sector deposits to 75 percent, the Central Bank of Nigeria (CBN) will on Tuesday, February 4 start the withdrawal of an estimated sum of N1tn from the Deposit Money Banks.
The withdrawal of 75 percent public sector funds is to mop up excess liquidity in the banking system , reports Daily Trust.
The scaling back of the CRR facility to banks is also to encourage them mobilize savings from traditional sources, other than the public sector.
The move will leave banks trading with only 25 percent of public sector funds.
Read more at Daily Trust