culled from: http://www.naijatechguide.com
You must have heard about the cashless policy of the Central Bank of Nigeria, CBN by now. Well, if you have not, it is a policy aimed at reducing the volume of physical cash circulating in the Nigerian economy. Core to the cashless (more like cash-lite) policy is the introduction of daily bank deposit/withdrawal limits above which account holders pay huge transaction costs.Most articles on the cashless policy so far have focused on either announcing the policy or highlighting the challenges facing it. Very few have actually focused on what payment and transaction options are available to you if you require transactions above the daily limits without paying the huge cash handling charges or if you just want to go cashless or cash-lite. In this article we will be highlighting some of these e-payment and e-transaction options.
Cashless Policy Overview
Before going through the payment/bank transaction options, let us first see what the cashless policy is all about. CBN has introduced daily limit for withdrawal and deposit into a bank account. The cumulative daily limit is N150,000 for individual accounts and N1,000,000 for corporate accounts. Above this daily limit you will pay huge cash handling cost of N100 for every N1000 (10%) above the limit.So, you can withdraw above the limit, but it will be very expensive if not stupid. For example, if an individual withdraws/deposits N1,000,000 in a day, the first N150,000 will be handled free and the excess N850,000 will attract a 10% handling charge (i.e N85,000). So, under the cashless policy you will be debited for N1,085,000 if you withdraw N1,000,000 and credited for N915,000 if you deposit N1,000,000. To avoid the huge charges you have to use e-payment and e-banking options. Note that if a third party deposits cash to your bank account it is you (account holder) that will bear the transaction cost.
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