Don't Miss

CBN begins second phase cashless policy July 1

By on May 14, 2013

The Central Bank of Nigeria (CBN) has affirmed that the second phase of the cashless initiative will begin July 1, 2013. Deputy Governor, Operations, CBN, Mr. Tunde Lemo, confirmed this weekend, saying that the planned extension of the cashless policy to five states, as well as the Federal Capital Territory (FCT) from July 1 still holds. The states to implement the cashless initiative  include Rivers, Kano, Anambra, Ogun and Abia as well as the FCT.

According to Lemo, the states and the FCT were chosen because of the large volume of cash transactions in some of their major cities. He explained that in order to achieve the target, the apex bank and lenders had already drawn a road map, which is being followed meticulously.

“We are ready to roll out to the six other states and there would be no change in date. We are not shifting the goal post. We have a road map, which is being followed and we are fully prepared,” he said.

It will be recalled that the cashless policy, whose implementation began in Lagos in January, last year, is aimed at reducing the dominance of cash in the system. The policy specifies penal charges for individuals and corporate organisations that want to withdraw or lodge cash above prescribed limits.

Under the policy, the CBN pegged the daily cumulative cash withdrawal or deposit limit for individual accounts at N500,000 per day and N3 million per day for corporate accounts.

Lemo had in the first phase said: “When we talk about nationwide roll-out, we are also being careful to ensure that we make use of resources in a smart way. Cash doesn’t flow in the same volume in every state of the federation. What we would do in July is to look at those other market clusters where large amount of volume is transacted and add them to Lagos.”