Abuja – The Central Bank of Nigeria’s (CBN’s) cashless policy has commenced as scheduled in several states.
CBN confirmed the policy was now effective in the Federal Capital Territory (Abuja), Abia, Anambra, Kano, Ogun and Rivers States.
“The Policy will drive the development and modernization of our payments system within the FCT and selected States as all individuals and Corporates will be encouraged to adopt electronic payment and other banking options,” CBN stated.
The policy will attract some charges if cash withdrawal and deposit transactions for individual account holders on daily cumulative or single transaction are in excess of N500 000 (US$3 000) while for corporate account holders, charges will apply when daily cumulative or single cash withdrawals and deposits are in excess of N3 million.
Exemptions have however been granted on deposits and withdrawals for accounts operated by Embassies, Diplomatic Missions, Multilateral Agencies, Aid Donor Agencies, Ministries, Departments and Agencies of Government (revenue collections only), Microfinance Banks (MFBs) and Primary Mortgage Institutions (PMIs).
CBN introduced the new policy for a number of key reasons, including to drive development and modernization of the payment system in line with Nigeria’s vision 2020 goal of being amongst the top 20 economies by the year 2020, to reduce the cost of banking services (including cost of credit) and drive financial inclusion by providing more efficient transaction options and greater reach as well as to improve the effectiveness of monetary policy in managing inflation and driving economic growth.
– CAJ News