Cashless policy begins in Nigeria

The implementation of the cashless policy of the Central Bank of Nigeria (CBN) begins in the Federal Capital Territory (FCT) and five other states today.

The policy, which has been in operation in Lagos State, aims at reducing the amount of physical cash circulating in the economy and encouraging more electronic based transactions for payment of goods and services and transfers, among others.

Consequently, Rivers, Kano, Anambra, Ogun and Abia will now join Lagos in the policy which will deny customers and merchants the cash-in-transit lodgment. Cash evacuation services will no longer be available to customers or merchants.

For individual account holders in these states, charges will apply when daily withdrawals and deposits are in excess of N500,000 and for corporate account holders charges will apply when daily withdrawals and deposits are in excess of N3,000,000.

Coming one month after the commencement of the N150,000 limit for third party cheque, banks have commenced strategies to woo and retain customers. CBN had recently directed that effective June I, all third party cheques above N150,000 shall not be eligible for encashment over the counter in all banks nationwide.

Consequently, determined not to lose customers due to the policy, some banks over the weekend intensified efforts at reminding their customers of other existing electronic platforms while urging them to avail themselves of other channels.

“In our effort to help our customers in these states transit into a cash-less society, we have made several e-banking solutions available for purchases and banking transactions including PoS terminals, Internet banking, electronic branches,” a banker told BusinessDay at the weekend.

A bank sent out a circular to its customers at the weekend advising them to use alternative options to avoid the attendant penalty.  BusinessDay