Cbn new cashless policy

You're referring to the Central Bank of Nigeria's (CBN) new cashless policy!

On January 15, 2020, the CBN introduced a new cashless policy aimed at reducing the use of cash transactions and promoting electronic payments in the country. Here are the key highlights of the policy:

Key Features:

  1. Cash withdrawal limits: The policy sets limits on cash withdrawals from ATMs, over-the-counter (OTC) transactions, and cash deposits.
    • For individuals: N500,000 (approximately $1,300) per day and N3,000,000 (approximately $7,700) per month.
    • For corporate organizations: N5,000,000 (approximately $13,000) per day and N15,000,000 (approximately $39,000) per month.
  2. Cashless transactions: The policy encourages the use of electronic payment channels, such as mobile banking, online banking, and card transactions.
  3. Fees and charges: The CBN introduced fees and charges for cash withdrawals above the set limits, as well as for cash deposits.
  4. Penalties: Banks and other financial institutions that fail to comply with the policy may face penalties, including fines and suspension of operations.

Benefits:

  1. Increased financial inclusion: The policy aims to increase financial inclusion by encouraging more people to use electronic payment channels.
  2. Reduced cash handling risks: The policy reduces the risks associated with handling cash, such as theft, loss, and counterfeiting.
  3. Improved transparency and accountability: The policy promotes transparency and accountability in financial transactions.
  4. Boost to digital payments: The policy is expected to drive the adoption of digital payments, which can lead to increased economic efficiency and growth.

Challenges:

  1. Infrastructure limitations: The policy may be challenging to implement in areas with limited or no access to electronic payment channels.
  2. Public acceptance: Some individuals and businesses may resist the change to electronic payments, citing concerns about security, convenience, and accessibility.
  3. Implementation costs: Banks and other financial institutions may incur additional costs to implement the policy, which could be passed on to customers.

Overall, the CBN's cashless policy aims to promote a more efficient, secure, and transparent payment system in Nigeria. While there may be challenges, the policy has the potential to drive financial inclusion, reduce cash handling risks, and boost digital payments in the country.