Cbn new policy on cash deposit

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

On January 15, 2020, the CBN introduced a new policy aimed at reducing the use of cash in transactions and promoting electronic payment systems. The policy, known as the "Cashless Policy," has some significant implications for individuals and businesses in Nigeria.

Here are the key highlights of the new policy:

Cash Deposit Limits:

• For individuals, the daily cash deposit limit is N500,000 (approximately $1,300 USD).
• For businesses, the daily cash deposit limit is N3,000,000 (approximately $7,800 USD).

Cash Withdrawal Limits:

• For individuals, the daily cash withdrawal limit is N500,000 (approximately $1,300 USD).
• For businesses, the daily cash withdrawal limit is N5,000,000 (approximately $13,000 USD).

Charges:

• A 2% charge will be imposed on cash deposits above the daily limits.
• A 3% charge will be imposed on cash withdrawals above the daily limits.

Exemptions:

• The policy does not apply to:
  • Cash deposits made at ATMs.
  • Cash deposits made at microfinance banks.
  • Cash deposits made at other financial institutions that are not participating in the cashless policy.

Benefits:

• The policy aims to reduce the use of cash in transactions, promoting electronic payment systems and reducing the risk of cash-related crimes.
• It is expected to increase financial inclusion, as more people will be encouraged to use digital payment channels.
• The policy may also help to reduce the cost of cash handling and improve the efficiency of financial transactions.

Implementation:

• The policy is being implemented in phases, with the first phase focusing on Lagos and Abuja.
• The CBN has instructed banks to implement the policy and to provide education and awareness to their customers.

It's essential to note that the CBN may adjust the policy as needed, and individuals and businesses should stay informed about any changes.

I hope this information helps! Do you have any specific questions about the policy or its implications?