Cashless Policy In Five States

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All commercial banks are now barred from providing cash in transit (CIT) and Cash Pick Up (CPU) services to customers.

This follows the implementation of Central Bank of Nigeria (CBN) cashless policy in five states and the Federal Capital Territory (FCT) Abuja with effect from July 1, 2013.

The states are , Rivers, Abia, Anambra, Kano and Ogun.

This was made known in a  circular by CBN , made available to The Tide in Port Harcourt. The circular indicated that only licensed CIT companies will be allowed to provide these services from the effective date of the scheme.

With the kick-off of the policy, the maximum daily cumulative cash withdrawals and deposit transaction for both individuals and corporate accounts would be N500,000 and N3,000,000 million, respectively.

The CBN also directed commercial banks to charge 2 per cent and 3 per cent for individual and corporate deposits, while individuals and corporate withdrawals attracts 3 and 5 per cent charges respectively on withdrawals exceeding the stipulated limits.

The circular further indicated that account holders will now bear the listed charges while individuals/ depositors paying money from outside the above listed states into an account where the policy is effective shall bear the charges”.

However, the CBN approved exemption on lodgment and withdrawals for accounts operated by embassies, diplomatic missions, multilateral agencies, aid donor agencies, ministries, departments and agencies of government (revenue collections only) as well as microfinance banks (MFBs) and primary mortgage institutions.