Tuesday 20 March 2012

CBN reviews cashless policy •Takes off nationwide Jan 1, 2013


APPARENTLY to reflect the realities on the ground, the Central Bank of Nigeria (CBN) has holistically reviewed the key components of its cashless policy, targeted at enhancing payment system in the country.

While the Cashless Lagos pilot run was extended till December 31, 2012, its spread to other parts of the country was deferred to January 1, 2013 as against June this year as earlier planned.

A circular entitled: “Industry policy in retail cash collection and lodgment,” 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, the daily cumulative limits which were hitherto N150,000 and N1 million were reviewed upward to N500,000 and N3 million on free cash withdrawal and lodgment by individual and corporate customer respectively.

The apex bank also reviewed downwards the processing fee for withdrawal above the limit. While that of individual was reduced from 10 per cent to three per cent, corporate was reduced to five per cent from 20 per cent. The processing fee for lodgment for individual was also reduced from 10 per cent to two per cent, while that of corporate was reduced to three per cent from 20 per cent.

The apex bank, however, noted that the reduction of the various processing fees is temporary and would be subject to review every six months.

The CBN further granted exemptions to ministries, departments and agencies (MDAs) of the federal and state governments for the purposes of revenue collections only.

It emphasised that collection of charges by banks under the Cashless Lagos project would, however, take effect as scheduled on April 1, 2012.
http://tribune.com.ng/


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