CBN Suspends Cashless policy; orders banks to make refunds to customers
The Central Bank of Nigeria (CBN) has suspended its earlier directive on the implementation of cashless policy by directing commercial banks to revert to old charges and refund customers who had been debited.
CBN had earlier announced new charges on deposit and withdrawals above a threshold of N500,000.
The apex bank had directed banks to charge 5% and 10% for deposits and withdrawals above N40m in the corporate category.
The bank had fixed 1.5% and 2% for deposits ranging from N500,000 and N1 million in the individual category.
But in the circular released on Friday and signed by Dipo Fatokun, director, banking and payments system department, CBN said the existing policy before the announcement of the new policy shall remain in place in Lagos, Ogun, Kano, Abia, Anambra, Rivers and Abuja.
“You will recall that a directive was issued on the nationwide implementation of the cashless policy vide our circulars with reference numbers BPS/DIR/GEN/CIR/04/001 dated February 21 and BPS/DIR/GEN/CIR/04/002 dated March 16,” the circular read.
“Please note that the new withdrawal and deposit processing fee charges above the threshold, as contained in the circulars referenced above, are hereby suspended until further notice. The position of the policy shall now revert to the status quo ante.”
The old charges to be reverted to 3% processing fee for withdrawals above N500,000 in the individual category and 5% for withdrawals above N3 million.
“The new policy already applied effective April 1, 2017, as contained in the circulars in reference above should be reversed and the old charges be applied. All necessary refunds should be made accordingly.”