The Central Bank of Nigeria (CBN) has said that effective from June 1, 2012, daily cumulative withdrawals and lodgements in banks by individuals will be limited to a maximum of N150,000.
The apex bank also pegged the daily cumulative withdrawals and lodgements by corporate customers at N1,000,000 effective from the same date.
CBN noted that the policy decision was in view of increasing dominance of cash in the economy with its implication for cost of cash management to the banking industry, security, money laundering, amongst others.
The banking regulatory authority, which disclosed this Thursday in a circular titled: “Industry Policy on Retail Cash Collection and Lodgement,” signed by its Director of Currency Operations Depart-ment, Mr Muhammad Nda, warned that individuals and corporate organisations that flout the limits would be charged penalty fees of N100 per thousand and N200 per thousand respectively.
CBN who pointed out that the policy was adopted to reduce high usage of cash and moderate the cost of cash management as well as encourage the use of electronic payment channels, stated that it took the decision in collaboration with the bankers’ committee.
It threatened to suspend any bank, payments scheme, processor, switching company or service provider that contravenes the policy for a minimum of one month, warning that the licence of such institution might be withdrawn if such contravention was repeated. The CBN added: “Contravention of this policy shall attract a fine of five times the amount that the bank waives as a first offender. Subsequently, the bank shall pay ten times the charges waived. Furthermore, third party cheques above N150,000 shall not be eligible for encashment over the counter. Value for such cheques shall be received through the clearing house.
“If a bank allows third party cheque encashment, it shall be liable to a sanction of 10 per cent of the face value of the cheque or N100, 000 whichever is higher. Banks will cease cash in transit lodgement services rendered to merchant-customers from June 1, 2012. In this regard, customers could engage the services of the CBN licensed cash-in-transit (CIT) companies to aid cash movement to and from their banks at mutually agreed terms and conditions. Contravention of this policy shall attract a fine of N1 million per specie movement.”
According to the regulator, the arrangement would, in the first instance, be implemented in Lagos State, the Federal Capital Territory (FCT), Port Harcourt, Kano and Aba.
It added that it would thereafter be extended to other parts of the country at a date to be determined by the Bankers Committee.
“To achieve interoperability of local currency Point of Sale (PoS) transactions, no card scheme, foreign or local, shall operate exclusive acquirer agreement or contract in Nigeria with effect from June 1, 2011. This policy shall apply to both private and public sector transactions. All financial institutions including Deposit Money Banks, Savings and Loans, Mortgage and Microfinance Banks shall comply accordingly,” the CBN explained.
Source: thisdaylive.com
to control our economy and the in&outflow of currency in the system is good,but i want our CBN governor to expanciate the plus and minus of this proposed policy for us,bcos how would business like petrol station cope with the policy.
Plz let this policie be reversed bcoz its adverse effects will be more than its positive impacts on the masses. Coorporate organizatns will find it difficult to operate, Savings will b discouraged, armed robbery will be widespread, ….
I hope sanusi is aware of he’s trying to do. I don’t really if he do balance the policies he propound. No everybody is educated enough to key into some of these policies.
I dont understand will this actually work in Nigeria? lts easy to create a policy but to lmplement it is our problem in Nigeria. pls Mr. Sanusi have you really weigh the positive and negative effects this will cause? pls ponder over it. l know u are trying. well done.