These additional states include Abia, Anambra, Kano, Ogun and Rivers States, as well as the Federal Capital Territory (Abuja).
“We write to inform you of the commencement of Cashless Policy charges on cash withdrawal and deposit transactions in the Federal Capital Territory (Abuja), Abia, Anambra, Kano, Ogun and Rivers States effective Tuesday, 1st of October, 2013 as directed by the Central Bank of Nigeria” GTB said in a message to customers.
The cashless policy aims at reducing the amount of physical cash circulating in the economy and encouraging more electronic-based solutions for payments for goods and services, transfers, etc. The Policy will drive the development and modernization of our payments system within the FCT and selected States as all individuals and corporate bodies will be encouraged to adopt electronic payment and other banking options.
In effect, the following modalities which are already in effect will now attract these charges: For individual account holders, charges will apply when daily cumulative or single cash withdrawals and deposits are in excess of N500, 000. For Corporate account holders, charges will apply when daily cumulative or single cash withdrawals and deposits are in excess of N3, 000,000.
The applicable charges on excess deposits or withdrawals will therefore stand as thus: For individual deposits, 2 per cent would be charged on excess and 3 per cent on excess for corporate bodies. On withdrawals, individuals would be charged 3 per cent on excess and 5 per cent on excess for corporate bodies.
GTB stated that the above limits apply so far as it involves cash, irrespective of channel, that is, over the counter, via Automated Teller Machines (ATM), Third party cheques cashed over the counter and so on. For example, if an individual withdraws N450, 000 over the counter, and N150, 000 from the ATM on the same day, the total amount withdrawn by the customer is N600, 000, and the service charge will apply on N100, 000 – the amount above the daily free limit of N500, 000.
Exemptions have however been granted on deposits and withdrawals for accounts operated by Embassies, Diplomatic Missions, Multilateral Agencies, Aid Donor Agencies, Ministries, Departments and Agencies of Government (revenue collections only), Microfinance Banks (MFBs) and Primary Mortgage Institutions (PMIs).
The charges, which would begin to be implemented on Wednesday, when banks resume businesses due to the public holiday observed on Tuesday, is coming in a few months after the policy was implemented in Lagos.
In a circular issued in May, the Central Bank announced the extension of the cash-less policy to five states and Abuja, having birthed the policy in Lagos.
“In line with the decision of the Bankers Committee at its meeting of 12th February 2013, the cash-less policy would be extended to the following five states: Abia, Anambra, Kano, Ogun Rivers and the Federal Capital Territory, with effect from July 1, 2013.
“In view of the above, branches of Deposit Money Banks in the affected states are to commence: The enlightenment of their customers on the Cash-less policy, including the existing limits on cash withdrawals and deposits for individuals and corporate bodies, as well as the available e-payment options, training of staff on the cash-less policy in order to provide answers and handle issues/customers complaints, as well as provide answers to enquiries and handle issues/customers complaints as well as provide advice on the policy; median communication by the banks to complement existing CBN’s and Bankers’ committee media’s campaign; engagement of banks’ and key customers and other stakeholders,” the Central Bank said.
The regulatory body said that the implementation team will perform spot checks on bank branches in the phase II locations to ensure readiness and compliance. Click to signup for FREE news updates, latest information and hottest gists everyday
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i still wonder about this cashless policy. so far i cant use my card to buy a bag of gari, its still not a cashless anything to me.
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