CBN's cashless policy charges Nigerians more for cash deposits, withdrawals

The cashless policy takes immediate effect in six states, and the FCT, but will be implemented nationwide from March 2020.

The Central Bank of Nigeria (CBN) says Nigerians will now be charged more for cash deposits and withdrawals in furtherance of its cashless policy.

In a circular, dated September 17, 2019, the CBN's director of Payments System Management Department, Sam Okojere, instructed deposit money banks to implement the policy starting from September 18.

"Charges on deposits shall apply in Lagos, Ogun, Kano, Abia, Anambra, Rivers states and the FCT, in addition to already existing charges on withdrawals, effective September 18, 2019," the statement read.

According to the policy, a 3% processing fee will be charged for withdrawals of amounts above N500,000 for individual accounts, while 2% will be charged for deposits.

For corporate accounts, a processing fee of 5% will be charged for withdrawals, and 3% for deposits of amounts above N3 million.

"Please ensure strict compliance," the CBN circular told banks.

While the cashless policy is currently implemented in only six states and the Federal Capital Territory, nationwide implementation will take effect from March 31, 2020.

The CBN hopes the policy will reduce the amount of physical cash (coins and notes) circulating in the economy, and encourage more electronic-based transactions.