NOTES TO TAKE IN ORDER TO FULLY COMPREHEND THE NEWLY INTRODUCED CBN’s CASHLESS POLICY
A:- The policy is aimed at reducing (not ELIMINATING) physical cash in circulation. This will encourage more electronic-based transactions.
B:- The charges are on the EXCESS of the amount. Not the principal (for lack of better words).
-The charges are 3% on withdrawals and 2% on lodgments for INDIVIDUAL accounts.
-5% on withdrawals and 3% on lodgments for CORPORATE accounts.
-The CUMULATIVE limit is N500,000 for individuals and N3m for CORPORATE accounts.
C:- Unlike stamp duty charges that hits the beneficiary’s account directly, the cash-less charge on DEPOSITS is borne by the depositor. Except you are also the depositor.
ii:- The charge on WITHDRAWALS is borne by the account holder.
D:- The policy was only REINTRODUCED, it has been there before, but was halted at some point. The pilot stage of cashless policy (withdrawals) took off in Lagos on March 30, 2012 and spread out to some major states (Abia, Ogun, Rivers, Anambra, Kano & FCT) by October 1, 2013.
E:- It is a CUMULATIVE DAILY LIMIT on all CASH transactions. So, don’t pay in N500,000 and come back with N50,000. Use alternative channels.
ii:- The charges applies to all transaction that involves CASH- irrespective of the CHANNEL. This includes ATM and 3rd party cheques cashed over the counter. However, 3rd party cheques above N150,000 can no longer be cashed over the account.
F:- The policy has taken off in major states as at Sep 18th, 2019. You don’t know this because you probably do not have N500,000 to withdraw or deposit- CASH.
G:- The Reps have however told the CBN to pause on its implementation.
IT IS NOT ALL BAD NEWS AS THERE IS AN ADVANTAGE IN THIS POLICY FOR ALL PARTIES INVOLVED
–For Consumers: Increased convenience, lesser risk of cash-related crime, access to out of branch services, more banking services option and financial inclusion.
–For Corporations: Faster access to capital, reduced cash leakages and cash handling cost.
–For Government: Increased tax collections and economic development, greater financial inclusion.
EXCEPTIONS TO THIS POLICY
The policy applies to all accounts with exception to Government revenue generation accounts, Embassies, Primary Mortgage institutions and MFBs.
NOTE: You can avoid these charges by using alternative channels. Please contact your financial service provider for these channels.
Olalekan Ajimoti – Blogger, Content Writer, and Digital Marketer helping brands and retailers build 8-figure e-commerce since 2016.
As a corporate trainer, brand communications expert, and brand consultant, I help people start, stay and grow in business leveraging digital skills and traditional expertise.
