Central Bank Releases Guidelines for Cashless Lagos, Rules Apply from 1-1-2012

The CBN released guidelines for the implementation of Cash Lite Lagos beginning, January 1^st, 2012.

Under the guidelines released by the CBN, banks are expected to stop providing CIT (cash in transit) services to merchant customers.

CIT services will henceforth be provided by CBN licensed carriers. Banks that continue to provide CIT services will be penalized by the apex bank.

Another guideline bound to shake up the banking system in Lagos when it takes off is the restriction of encashment of 3r party cheques valued above N 150,000 over the counter. Such cheques are expected to pass through the clearing house.

Individuals now have a daily “free” withdrawal limit of N 150,000, whilst corporate may withdraw N 1,000,000. Any withdrawals above these amounts are subject to charges of N100 per every N 1000 for individuals and N200 per every N 1,000 over the limit or 20%. These charges are meant to serve as a huge disincentive for those who keep tons of cash circulating in the economy.

The CBN has however stated that these charges/penalties will not take effect until  March 30^th 2012.

Account holders will bear the charges of any cash deposit transactions over the limit. Interstate transactions will attract charges if they are outgoing from Lagos and not incoming into Lagos as the rules will only apply in Lagos during the pilot stage.

For instance, an individual in Lagos paying in money over the limits into an account in Onitsha will pay the charges for the account holder until the rules take effect in other parts of Nigeria. However an account holder in Onitsha paying money over the limit into an account in Lagos will not bear any charges.

The rules are quite easy to understand, however they may likely cause confusion and discomfort in the early stages.

View the entire guidelines from the Central Bank here