Cbn release new cashless policy
You're referring to the recent announcement by the Central Bank of Nigeria (CBN) regarding a new cashless policy!
Here's a summary of the key points:
What is the new cashless policy?
The CBN has introduced a new cashless policy aimed at reducing the use of cash transactions and promoting digital payments in the country. The policy is designed to encourage the adoption of electronic payment systems, reduce the risk of cash-based transactions, and increase financial inclusion.
Key features of the policy:
- Cash withdrawal limits: The CBN has introduced daily cash withdrawal limits for individuals and corporate organizations. For individuals, the limit is N500,000 (approximately $1,300) per day, while for corporate organizations, it is N3,000,000 (approximately $7,800) per day.
- Cashless transactions: The policy encourages the use of digital payment channels, such as mobile wallets, online banking, and card transactions, for transactions above the daily cash withdrawal limits.
- Increased charges: The CBN has introduced increased charges for cash-based transactions, including a 2% charge on cash deposits and a 5% charge on cash withdrawals above the daily limits.
- Exemptions: The policy exempts certain transactions, such as payments for government services, utility bills, and transactions at microfinance banks, from the cash withdrawal limits and charges.
Why is the policy important?
The new cashless policy aims to:
- Reduce corruption: By reducing the use of cash, the policy aims to reduce the risk of corruption and money laundering.
- Increase financial inclusion: The policy aims to increase access to financial services for underserved populations, particularly in rural areas.
- Promote digital payments: The policy encourages the adoption of digital payment systems, which can reduce transaction costs and increase efficiency.
What are the implications for Nigerians?
The policy may have both positive and negative implications for Nigerians. On the positive side, it may encourage the adoption of digital payment systems, reduce transaction costs, and increase financial inclusion. On the negative side, it may lead to increased charges for cash-based transactions, which could disproportionately affect low-income individuals and small businesses.
Overall, the new cashless policy is a significant development in Nigeria's financial landscape, and its impact will depend on how effectively it is implemented and the measures taken to mitigate its potential negative effects.