The CBN’s cashless monetary policy enforcement is set to begin nationwide in July 2014. The pilot program started in Lagos in July 2012, and subsequently in other states; Rivers, Anambra, Kano, Abia, Ogun and the FCT in July 2013.
The cashless monetary policy enacted during the tenure of Mallam Sanusi Lamido affects all accounts- corporate or individual, excluding the government revenue generation account, mortgage institutions, microfinance banks and embassies.
The highlights of the policy stipulate a daily cumulative limit on deposits and withdrawals at five hundred thousand naira which applies to cash dispersed over the counter, through ATMs and third party cheques. The monetary policy does not prohibit withdrawals and deposits above the stipulated limit, but such excess is subject to cash handling charges borne by the account holder. However, third party cheques of over N150,000 presented across the counter will not be processed for cash payments and the beneficiaries will be advised to route the cheques through their accounts.
The monetary policy aims to drive the development and modernization of the payment system in line with vision for 2020, and accelerate the use of electronic channels thus increasing convenience for customers by giving them cheaper access to out of bank services and reducing cash handling costs for corporations. It also aims to reduce tax evasion, manage inflation and drive economic growth.
Most financial institutions have created awareness on this nationwide enforcement by engaging their customers for clarification on the policy and how it will affect them.