Business
CIBN Advises CBN To Defer Policy On Cash Withdrawal Limit
Registrar of Chartered Institute of Bankers of Nigeria (CIBN), Dr Uju Ogubunka, has advised the Central Bank of Nigeria (CBN) to defer its policy on cash withdrawal and deposit limit.
The Tide correspondent reports that the CBN, had in May this year, introduced limits of N150, 000 and N1million on cash withdrawal and deposit for individual and corporate bodies respectively.
It imposed charges of N100 on every N1000 for individuals and N200 on every N1000 for corporate bodies for cash transactions above the limits.
The CBN later brought forward the implementation date from June 2012 to December 2011 with Lagos as pilot state.
Ogubunka told newsmen in Lagos yesterday that the policy should be implemented when the economy was ripe for it.
According to him, weighing the economic situation, the country is not ripe for such policy because of the absence of the infrastructure needed to drive it.
Ogubunka also said the level of literacy on banking was very low and the CBN needed to re-orientate Nigerians before implementing the policy.
He said that many Nigerians did not have accounts in banks and so the policy would be difficult to implement for now.
The CIBN registrar said that although the policy was well intentioned, it would make many Nigeria to shy away from the banking system because of its high default penalties.
”What this can lead to is that Nigerians that do not operate current or savings accounts may decide to keep their money at homes,’’ he said.