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CBN Suspends Cashless Policy in 30 States

The Central Bank of Nigeria on Friday announced the immediate suspension of the implementation of the Cashless Nigeria Policy in 30 states of the federation.

This came exactly 21 days after the CBN commenced the nationwide implementation of the cashless policy on April 1, 2017.

In a circular signed by the Director, Banking and Payment System, CBN, Mr. Dipo Fatokun, the regulatory agency ordered deposit money banks to revert to the old charges and refund customers who had been debited for withdrawing and making cash deposits above the limits allowed under the policy.

The CBN had earlier announced new charges on deposits and withdrawals above a threshold of ₦500,000 for individuals and ₦3m for corporate organisations.

The bank had fixed 1.5 per cent and two per cent for deposits above ₦500,000 and ₦1m in the individual category.

Fatokun, however, said the implementation of the policy would remain in Lagos, Ogun, Kano, Abia, Anambra and Rivers states, as well as the Federal Capital Territory.

The circular read in part, “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 old charges to be reverted to three percent processing fee for withdrawals above ₦500,000 in the individual category and five per cent for withdrawals above ₦3m.

“The new policy already applied effective April 1, 2017, as contained in the circulars in the reference above should be reversed and the old charges be applied. All necessary refunds should be made accordingly.”

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