The Central Bank of Nigeria (CBN) has released modalities for the pilot implementation of the cash policy for cashless transactions starting with Nigeria’s commercial capital of Lagos on 1 January, 2012, according a statement from the bank.
The Apex bank said only CIT-licensed companies shall be allowed to provide cash pick-up services from the stated date. In addition, Banks will cease cash in transit lodgment services rendered to merchant-customers in Lagos from 31 December, 2011.
“Any bank that continues to offer cash in transit lodgment services to merchants shall be sanctioned accordingly. Third party cheques above 150,000 naira (about US$ 1,000) shall not be eligible for encashment over the counter. Value for such cheques shall be received through the clearing house.
The bank explained that the service charges and fees would not apply until 30 March, 2012, in order to give people time to migrate to electronic channels and experience the infrastructure that has been put in place.
Therefore, banks should continue to encourage their customers to migrate to available electronic channels, and where possible demonstrate the costs that will accrue to those that continue to transact high volumes of cash after 31 March in Lagos.
The cash-policy applies to all accounts, including collection accounts. Banks should therefore work with their corporate customers to arrange for suitable e-collection options.
It sets the limit to include the cumulative daily limits each for withdrawal, and for deposits (for Individuals, the daily free withdrawal limit is 150,000 naira; while the daily free deposit limit is 150,000 naira).”
“The limits apply to the account so far as it involves cash, irrespective of channel (over the counter, ATM, third party cheques encashed over the counter) in which cash is withdrawn or deposited.
For instance, if an individual withdraws 50,000 naira over the counter, and 150,000 naira from the ATM on the same day, the total amount withdrawn by the customer is 200,000 naira, and the service charge will apply on 50,000 naira – the amount above the daily limit”.
It, however, explains that the charges shall apply from 30 March, 2012, in Lagos. “The service charge for daily cumulative deposits above the limit into an account shall be borne by the account holder.
However, during the pilot implementation in Lagos, individuals paying money from Lagos, into an account outside Lagos, shall bear the charges for any single transaction above the daily limit.
The service charge for daily withdrawals above the limit into an account shall be borne by the account holder