Cbn new policy on deposit
You're referring to the new policy on deposits by the Central Bank of Nigeria (CBN).
On July 27, 2020, the CBN introduced a new policy on deposits, which aims to promote financial inclusion, improve the stability of the financial system, and enhance the efficiency of the payment system. The policy is designed to encourage banks to maintain a minimum level of deposits, while also promoting the use of digital channels for transactions.
Here are the key highlights of the new policy:
- Minimum Deposit Requirement: Banks are required to maintain a minimum level of deposits, which is 65% of their total deposits. This means that banks must keep at least 65% of their deposits in the form of cash or other liquid assets.
- Deposit Ratio: The CBN has set a minimum deposit ratio of 65% for all banks, effective from July 27, 2020. This means that banks must maintain a minimum deposit ratio of 65% of their total deposits.
- Digital Channels: The policy encourages the use of digital channels for transactions, such as mobile banking, online banking, and card transactions. This is aimed at reducing the reliance on cash and promoting a more efficient payment system.
- Cashless Policy: The CBN has also introduced a cashless policy, which aims to reduce the use of cash for transactions. The policy encourages the use of digital channels for transactions, and banks are required to maintain a minimum level of digital transactions.
- Penalties: Banks that fail to meet the minimum deposit requirement or maintain a minimum deposit ratio of 65% will be subject to penalties, including fines and restrictions on their operations.
- Exemptions: The policy provides for exemptions for certain types of deposits, such as deposits made by government agencies, diplomatic missions, and international organizations.
Overall, the new policy on deposits by the CBN aims to promote financial inclusion, improve the stability of the financial system, and enhance the efficiency of the payment system.