Cash-Less Policy: Charges On Withdrawals, Deposit Kicks Off Wednesday

The Central Bank of Nigeria will on Wednesday begin the full implementation of its cash-less policy in the Federal Capital Territory, Rivers, Kano, Anambra, Ogun and Abia states.

This follows the end of a three-month moratorium on the charges given to customers who withdraw or deposit higher than the amount stipulated in the cash-less policy document.

The policy allows the CBN to peg the daily cumulative cash withdrawal or deposit limit for individual accounts at N500,000, while that of corporate accounts is fixed at N3m per day.

Addressing journalists in Abuja on the commencement of the policy in the FCT and the five states, the Deputy Governor, Operations, CBN, Mr. Tunde Lemo, said the imposition of the charges on withdrawals higher than the prescribed limit would ensure an effective implementation of the cash-less policy.

He said, “We will start applying the charges from October 2, which is Wednesday, because the three months moratorium would have expired.

“We are glad to announce that having worked with stakeholders, we have been able to ramp up facilities in Abuja and five other locations, and then, we are set to build up the critical mass requirement for the cash-less policy in those areas.”

He said any customer who deposited above N500,000 per day from Wednesday would be charged three per cent, while withdrawals above the limit would attract five per cent charge.

Lemo said, “For corporate bodies, the threshold is N2m. If you deposit or withdraw any money above the threshold per day, if it is deposit, it will attract three per cent charge, and if it is withdrawal, it attracts five per cent.

“Those are the charges that are already applicable in the Lagos area that we are now bringing to this location.”

He said customers needed not to pass through the onerous task of depositing and withdrawing money over the counter but should instead use electronic fund transfer.

The CBN deputy governor said electronic payment in Lagos accounted for 70 per cent to 80 per cent of high value transactions on daily basis.

Meanwhile, the CBN Governor, Mr. Lamido Sanusi, has kick-started the financial literacy programme in schools.

The programme provided Sanusi the opportunity to deliver a lecture on the importance of savings and investment to pupils of four secondary schools located in Abuja.

The schools are Model Secondary School, Maitama; Senior Secondary School, Jikwoyi; Senior Secondary School, Karu; and Government Secondary School, Kuje.

The CBN boss urged the pupils to be prudent in the management of their finances, adding that rather than spend their money on luxurious items, such should be kept in a savings account to yield interests.

He said, “Money is not an end in itself but you need money to do a lot of things. You should not borrow for the purpose of spending; rather, you can borrow to enable you invest.When you earn an income, the first thing you do is to pay yourself by setting aside at least 10 per cent as savings before using the remaining money to pay for other transactions.

“If your uncle or any other relation gives you money, since the money is not expected, you should save it in a bank for it to yield interest after a period of time.”

Earlier, the Director, Federal Capital Territory Secondary Education Board, Mrs. Yelwa Baba-Ari, described the session as a life changing occasion for the pupils.

She said, “The impact of this programme cannot be underestimated as our pupils require a lot of mentoring, motivation and inspiration.

“This opportunity provided by the CBN and the person of the governor is certainly going to be a life changing experience for these future leaders of this great nation.”