CBN: Cashless Policy Review, Nationwide takeoff Jan. 01, 2013

A circular entitled: “Industry policy in retail cash collection and lodgement,”
Dated 16^th March, 2012
Signed by the Acting Director, Bank and Payment System Department, Mr G.I Emokpae, to all the deposit money banks in the countries, cash-in-transit (CIT) companies, card acquirers, switches, issuers, processors and other stakeholders, stated that the review was in furtherance of the apex bank’s decision to ensure success of the Cashless Nigeria project.
He added that it was the outcome of the monitoring and feedback mechanism to allow for full adoption and smooth implementation across Lagos State and the entire country.

“CBN, having monitored the partial implementation of the Cashless Policy in Lagos State and following discussions with various stakeholders on the effective implementation of the project, has decided to reassess the policy to allow for smooth transition and adoption in Lagos State in the first instance, and the entire country at a later date.
Under the new arrangement,

Individuals:

Ø  Daily commutative cash limit for a free cash withdrawals and lodgments has been reviewed upwards from N150,000 to N500,000.

Ø  Penalty for amounts withdrawn in excess of the N500,000 threshold is now 3% (down from 10%).

Ø  Penalty for amounts deposited in excess of the N500,000 threshold is now 2% (down from 10%).

Corporate Organization:

Ø  Daily commutative cash limit for free cash withdrawals and lodgments has been reviewed upwards from N1,000,000 to N3,000,000.

Ø  Penalty for amounts withdrawn in excess of the N3,000,000 threshold is now 5%  (down from 20%).

Ø  Penalty for amounts deposited in excess of the N3,000,000 threshold is now 3% (down from the 20%).

Exemptions:

Ø  The policy (country to earlier provisions) now exempts accounts operated by Ministries, Departments and Agencies (MDAs) of Federal and State Governments (for revenue collection purposes only).

Effective Dates:

Ø  Full implementation  (with application of penalties) shall commence in Lagos effective from April 1, 2012

Ø  Full implementation shall now commence in the other states of the federation effective January 1, 2013

Jurisdiction:

Ø  This policy applies to transactions conducted in branches of Bank in Lagos State only effective April 1, 2012.

Notes:

All other aspects of the policy remain valid:

Ø  The ban on CIT movements by banks (effective January 1, 2012 in Lagos and January 1, 2013 in the other states of the federation).

Ø  The ban on the acceptance of third party cheques for cash lodgments across the counter (effective April1, 2012 in Lagos and January 1, 2013 in other states of the federation).

Ø  The policy review is to allow smooth transaction and its provisions on reduction in penalties are subject to review every 6 months from the commencement date.

Ø  The circular on the deployment of the end – to – end funds transfer by organizations / government agencies employing more than 50 persons is still in force.