Central bank reverses cashless policy, directs bank to refund deductions

The Central Bank of Nigeria has reversed the cashless policy it directed banks to introduce effective April 1, 2017 in some parts of the country.

The policy had been in operation in some parts of Nigeria before now.

Areas where it had been in operation were Lagos, Ogun, Kano, Aba, Anambra and Rivers State.

It has also been in operation in the Federal Capital Territory.

Th policy covers withdrawals and deposits above N500,000 and N3 million for individual and corporate accounts respectively.

For corporate accounts, CBN had directed banks to charge 5 per cent and 10 per cent for deposits and withdrawals above the threshold.

It fixed 1.5 per cent and 2 per cent for deposits above N500,000.

In the circular directing the reversal to the old order, the Director of Banking and Payments System Department, Dipo Fatokun, said: “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 3% processing fee for withdrawals above N500,000 in the individual category and 5% 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.”