Cash-less policy: Charges on withdrawals, deposits begin 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.”