The Central Bank of Nigeria on 21st February, 2017, through a circular to all Deposit Money Banks (DMBs) signed by the Director of Banking and Payments System Department, Mr. Dipo Fatokun, described the modalities for implementation of the cash-less policy to the remaining 30 states of the federation, and the application of charges on cash deposits and withdrawal above certain allowable limits. The Apex bank said this was in line with the decisions made during the 493rd meeting of the Bankers’ Committee on 8th February, 2017.
The decisions taken at the meeting as released by CBN were as follows:
Charges on deposit be re-introduced.
Charges on deposits and withdrawals were reviewed and the new rates indicated as follows;
For individuals:
Amounts less than ₦500,000; no charges on deposits and withdrawals
From ₦500,000 to ₦1,000,000; 1.5% on deposits and 2% on withdrawals.
Above ₦1,000,000 to ₦5,000,000; 2% on deposits and 3% on withdrawals.
Above ₦5,000,000; 3% on deposits and 7.5% on withdrawals.
For corporate:
Amounts less than ₦3,000,000; no charges on deposits and withdrawals.
From ₦3,000,000 to ₦10,000,000; 2% on deposits and 5% on withdrawals.
Above ₦10,000,000 to ₦40,000,000; 3% on deposits and 7.5% on withdrawals.
Above ₦40,000,000; 5% on deposits and 10% on withdrawals.
The new charges would take effect from 1<sup>st</sup> April 2017, in the existing cash-less states (Lagos, Ogun, Kano, Abia, Anambra, Rivers and the FCT).
The policy shall be implemented with the charges taking effect on 1<sup>st</sup> May 2017 in the following states: Bauchi, Bayelsa, Delta, Enugu, Gombe, Imo, Kaduna, Ondo, Osun and Plateau.
The policy shall be implemented with the charges taking effect on 1<sup>st</sup> August 2017 in the following states: Edo, Katsina, Jigawa, Niger, Oyo, Adamawa, Akwa-Ibom, Ebonyi, Taraba and Nasarawa.
The policy shall be implemented with the charges taking effect on 1<sup>st</sup> October 2017 in the following states: Borno, Benue, Ekiti, Cross-River, Kebbi, Kogi, Kwara, Yobe, Sokoto and Zamfara.
The income generated from the processing fees charged above the allowable cash transaction limits shall be shared between the CBN and the banks in the ratio of 40:60.
Existing exemptions remain sustained for:
Revenue generating accounts of the Federal, State and Local Governments (lodgments only)
Embassies, Diplomatic Missions, Multilateral and Aid Donor Agencies in Nigeria are also exempted from all processing fees relating to the cash-less policy implementation.
The CBN also urged the Banks to enlighten their customers on the cash-less policy, train their staffs on the cash-less policy so as to handle enquires and customer complaints, engage in media communication to complement CBN’s media campaign and engage key bank’s customers and other stakeholders.
From the above actions by the Apex bank, the CBN has once more resurrected its fight towards a cash-less economy. Though it can be said that it is a way of generating revenue for the government during this period of economic recession.