Cbn new cashless directives

The Central Bank of Nigeria (CBN) has introduced several cashless directives to promote digital payments and reduce the use of cash in the economy. Here are some of the key cashless directives issued by the CBN:

  1. Cashless Policy: The CBN introduced a cashless policy in 2012, which aimed to reduce the use of cash in transactions and promote electronic payments. The policy set limits on cash withdrawals from ATMs and introduced charges for cash withdrawals above certain limits.
  2. Cash Withdrawal Limits: The CBN set limits on cash withdrawals from ATMs and over-the-counter (OTC) transactions. For individuals, the daily cash withdrawal limit is N500,000 (approximately $1,300), while for corporate entities, it is N3,000,000 (approximately $7,700).
  3. Charges for Cash Withdrawals: The CBN introduced charges for cash withdrawals above the daily limits. For individuals, the charge is 2.5% of the withdrawal amount, while for corporate entities, it is 3.5%.
  4. Electronic Payment Channels: The CBN encouraged the use of electronic payment channels such as mobile money, online banking, and card payments. The bank also introduced a mobile payment platform, NIBSS e-Payment Gateway, to facilitate electronic payments.
  5. Agent Banking: The CBN introduced agent banking, which allows individuals and businesses to act as agents for banks to facilitate financial transactions. Agent banking aims to increase financial inclusion and reduce the use of cash.
  6. Point of Sale (POS) Terminals: The CBN encouraged the installation of POS terminals in various locations, including markets, shopping malls, and restaurants. POS terminals allow customers to make electronic payments using their debit or credit cards.
  7. Mobile Money: The CBN encouraged the use of mobile money services, which allow customers to store and transfer funds using their mobile phones. Mobile money services are offered by mobile network operators and banks.
  8. Digital Payment Platforms: The CBN encouraged the use of digital payment platforms, such as online payment platforms and digital wallets. These platforms allow customers to make electronic payments using their mobile phones or computers.
  9. Cashless Policy for Government Agencies: The CBN introduced a cashless policy for government agencies, which requires them to receive payments electronically. This aims to reduce the use of cash in government transactions and promote transparency and accountability.
  10. Monitoring and Enforcement: The CBN monitors and enforces compliance with the cashless directives. The bank has set up a monitoring committee to track compliance and take action against banks and other financial institutions that fail to comply with the directives.

Overall, the CBN's cashless directives aim to promote digital payments, reduce the use of cash, and increase financial inclusion in Nigeria.