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CBN suspends charges on large withdrawal, reverses cashless policy

Central Bank of Nigeria(CBN)

Central Bank of Nigeria (CBN)

The Central Bank of Nigeria(CBN) has reversed the cashless policy it directed Deposit Money Banks to introduce from April 1, 2017 in some parts of the country.

It has also directed banks to suspend over-the-counter or ATM withdrawals of above N500,000 or deposit of same amount.

The cashless policy had been in existence in Lagos, Kano, Ogun, Rivers, Abia, Anambra State and Federal Capital Territory.

In the circular directing the reversal to the old order, the Director of Banking and Payments System Department, Dipo Fatokun, said: “You will recall that a directive was issued on the nationwide implementation of the cashless policy vide our circulars with reference numbers BPS/DIR/GEN/CIR/04/001 dated February 21 and BPS/DIR/GEN/CIR/04/002 dated March 16.

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“Please note that the new withdrawal and deposit processing fee charges above the threshold, as contained in the circulars referenced above, are hereby suspended until further notice. The position of the policy shall now revert to the status quo ante.

“The old charges to be reverted to 3% processing fee for withdrawals above N500,000 in the individual category and 5% for withdrawals above N3 million.

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“The new policy already applied effective April 1, 2017 as contained in the circulars in reference above should be reversed and the old charges be applied. All necessary refunds should be made accordingly.”

“For further clarification, the existing policy prior to the announcement of the new policy as earlier implemented in Lagos, Ogun, Kano, Abia, Anambra, Rivers states and the FCT shall remain.

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“For the avoidance of doubt, the old charges to be reverted to are as follows: an individual charge on withdrawals or lodgment limit is now three per cent.

“Corporate accounts will be charged five per cent for withdrawal or lodgment of over N3m cash.

“Henceforth, nothing will be charged as processing fees for lodgments,” he said.

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