The hiccups in Sanusi’s cash-less policy

Written by Chris Agabi
culled from: http://sundaytrust.com.ng

It is no more news that the cash-lite or cash-less policy introduced
by the Central Bank of Nigeria to dissuade Nigerians from huge cash
transactions has begun. It is also no news that the pilot scheme
started in Lagos January 1, 2012. However, what may interest Nigerians
is the success or otherwise of the policy thus far. This is because,
the performance of the policy in Lagos will ultimately define how the
policy will be implemented in the rest of Nigeria commencing from June
1, 2012. In fact, it will tell if the project will succeed or fail.
These concerns have put promoters of the policy in the middle of the
storm following the barrage of criticisms that had greeted the policy
one year ago when it was first proposed by the Central Bank of Nigeria
(CBN) and Bankers Committee. Thus, for the operators, there is just
one goal – the policy must succeed.

What is cash-less policy?

By way of reminder, the cash-less policy is the migration from cash
based economy to electronic payment channels. The cash-less policy
does not in any way suggest there will no longer be cash in
circulation. The policy does not also prohibit withdrawals or deposits
above the stipulated amounts, but such transactions will be subject to
cash handling charges. The cumulative cash withdrawals/lodgements
daily limits are pegged at N150,000 and N1 million for individuals and
corporate organisations respectively. The limits apply to the account
so far as it involves cash, irrespective of channel (e.g. over the
counter, ATM, 3rd party cheques encashed over the counter etc) in
which cash is withdrawn or deposited (e.g. if an individual withdraws
N50,000 over the counter, and N150, 000 from the ATM on the same day,
the total amount withdrawn by the customer is N200,000, and the
service charge will apply on N50,000 - the amount above the daily free
limit). The limit also applies to cash brought through Cash-In-Transit
(CIT) licensed companies, as the CIT company only serves as a means of
transportation. Penalty fee of N100 per thousand and N200 per thousand
will be charged for individual and corporate organisation respectively
that transacts business above the limit. However, the charges shall
apply from March 30th 2012 in Lagos.

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