- The CBN cash policy stipulates a daily cumulative limit of N500, 000 and N3, 000,000 on free cash withdrawals and lodgments by individual and corporate customers respectively in the Lagos State with effect from March 30, 2012. Individuals and corporate organizations that make cash transactions above the limits will be charged a service fee for amounts above the cumulative limits.
- Furthermore, 3rd party cheques above N150, 000 shall not be eligible for encashment over the counter with effect from March 30, 2012. Value for such cheques shall be received through the clearing house.
- Banks will discontinue cash in transit lodgment services rendered to merchant-customers with effect from January 1, 2012.
No. There will still be cash in circulation. The cash policy aims at reducing the usage of cash and increasing the use of alternatives to cash due to the negative consequences of cash usage.
- No. The cash policy allows you to use any amount of money from your account electronically. However, if you wish to withdraw cash above the daily free cumulative limit of N500, 000 and N3 million for Individuals and corporate organizations respectively, you will be charged a service fee on amounts above the cumulative limits with effect from March 30, 2012.
- The policy does not restrict the amount of cash that an individual can withdraw or deposit. It only says that they will have to pay service fees on the excess cash.
- The cash policy takes effect on January 1, 2012 in Lagos as pilot
- Nationwide implementation of the policy will commence from June 1, 2012
The charges on cash deposit/withdrawal above the set limit will begin FROM March 30, 2012.
3rd party cheques can be cashed over the counter till March 30th 2012.
You will be charged 3% for individuals and 5% for corporates over the limit withdrawn, while there will be a 2% for individuals and 5% for corporates over the amount deposited.
Charges will be applied daily, since it requires the total daily amounts above the limit.
The policy takes immediate effect. However, Banks are encouraged to accommodate their customers and educate them that from March there will be no accommodation.
You will be charged the processing fee on N3,000.00 ONLY
No. The limit is on daily cumulative cash withdrawal/deposit AND NOT per withdrawal. So, if the cheques are going to be lodged into an account is allowed; but if the cheques are for withdrawals you breach the policy.
If a representative and signatory to a corporate account present a cheque on behalf of his company, it is considered a corporate withdrawal and he can cash up to N3, 000,000 cumulatively on that account.
Yes, you can withdraw more than once and NOT breach the policy provided your cumulative withdrawals per day do not exceed N500,000 for individual and N3,000,000 for corporates.
There will be no reports on individuals or corporates that exceed the limits. It is not illegal to exceed the limits; it is just that there will be a processing charge applied.
- To enable the achievement of the nation’s vision 2020 objective
- To reduce huge cost associated with cash handling (printing, storing, processing, distributing, etc)
- To reduce risk of robbery
- To increase convenience/access to payment (more payment options)
- To enable more transparency in payment systems, and allow for more effective monetary policy
- Reduce cash-related crimes for safety of bank customers and the general public.
- Any of the under listed channels can be used for electronic transactions instead of cash;
- Point-of-sale (POS) terminals
- Mobile payment system
- Internet banking
- Multi-functional ATM
- Electronic Funds Transfer Systems
- Direct debit for regular in nature bills payment
- You can go to your bank and make enquiry on any of the channels, you will be guided accordingly.
- The CBN also licensed 11 mobile payment operator to roll out mobile payments
- You can use any one that suits your need
- You can equally use more than one or all depending on your needs, but it is not a must for you to use all.
- If you ask your bank they will give you a POS terminal, most likely free of charge depending on your transaction volumes.
- You will only be paying 1.25% of the transaction (amount spent by customer) subject to a maximum of N2000 per transaction
The industry has endorsed four manufacturers for supply of Point-of-Sale terminals - PAX, Bitel, Ingenico, and Verifone - with negotiated discounts and local support arrangements. A PoS can be purchased from any of these four for as low as N45k per terminal. However, parties are free to purchase PoS terminals from any manufacturer, so far they meet the PoS specifications in the Point-of-Sale guidelines.
It saves you from robbery, theft, cost of cash management, hassles of counting cash, looking for change, getting more customers that do not have cash but card, access to more revenue from value added services of POS such as bills