CBN Suspends Cashless Policy in 30 States

Contrary to an earlier announcement, the Director, Banking and Payment System, CBN, Mr. Dipo Fatokun, has ordered Deposit Money Banks to revert to the old charges and refund customers who had been debited for withdrawing and making cash deposits above the limits allowed under the policy.

The policy only remains in Lagos, Ogun, Kano, Abia, Anambra and Rivers and the FCT.

The bank had fixed 1.5 per cent and two per cent for deposits above N500,000 and N1m in the individual category.

The circular read in part, “You will recall that a directive was issued on the nationwide implementation of the cashless policy vide our circulars with reference numbers BPS/DIR/GEN/CIR/04/001 dated February 21, and BPS/DIR/GEN/CIR/04/002 dated March 16.

“Please note that the new withdrawal and deposit processing fee charges above the threshold, as contained in the circulars referenced above, are hereby suspended until further notice. The position of the policy shall now revert to the status quo ante.

“The old charges to be reverted to three per cent processing fee for withdrawals above N500,000 in the individual category and five per cent for withdrawals above N3m.

“The new policy already applied effective April 1, 2017 as contained in the circulars in reference above should be reversed and the old charges be applied. All necessary refunds should be made accordingly.”