The cashless policy introduced by Central Bank Of Nigeria in 2012 will come into effect nationwide on July 1, 2014.
The cashless policy’s pilot scheme took off in Lagos in 2012 when it was introduced by the now suspended Governor of the CBN, Lamido Sanusi and the policy is already in operation in Abuja and 5 states of the federation.
The second phase of the scheme took off in Abuja, Rivers, Anambra, Abia, Kano and Ogun.
The policy limits daily cash withdrawals and deposits for individual customers to N500,000 while corporate customers can withdraw only N3 million.
A penalty charge is applicable for deposit and withdrawal daily limit irrespective of the channels, whether it is through ATM, third party cheques paid across the counter.
With the cashless policy, deposits above N500,000 in individual accounts attract 2 percent charge on the excess, while withdrawals above N500,000 attract 3 percent charge on the excess.
In the corporate account type, a deposit above N3 million will attract 3 percent charge on the excess, while withdrawals above N3 million attract 5 percent charge on the excess.
Categories of bank customers exempted from charges for cash transactions in terms of deposit only are ministries, departments and agencies of the federal, state and local governments on lodgements into accounts operated for revenue collection only.
Government owned institutions such as schools and hospitals do not enjoy this exemption.
On deposit and withdrawals, those exempted include embassies, diplomatic missions, multilateral and donor agencies, accredited agents of embassies, Micro finance banks and primary mortgage institutions.
For easy compliance with the policy, banks now advise their customers to use alternative e-channel services for their transactions.