Cashless policy CBN exempts embassies, donor agencies, others

Posted by Mgbenka at Wednesday, March 28, 2012 |

TO avoid breaching international laws, the Central Bank of Nigeria (CBN) has exempted specialised international institutions from the charges and penalties imposed on cash limit on lodgment and withdrawal,
as it relates to the cashless policy which took off in Lagos in January.

The international institutions that fall in this category include all embassies, diplomatic missions, multilateral and aid donor agencies in the country.
A circular, entitled: “Industry policy on retail cash collection and lodgment as it affects specialised international institutions,” addressed to all banks, Cash In Transit (CIT) companies; payment service providers, switches, card acquirers, issuers, processors and members of the public, which was signed by the acting director, Banking and Payment System Department, Mr G.I Emokpea, said the decision was in line with global standard, stressing that
sovereign states did not impose financial penalties on other sovereign states.

According to the statement, “Nigeria is a signatory to several treatises which exempt these international institutions from all fees and charges in the host country. As a matter of international practice, sovereign states do not impose financial penalties on other sovereign states. It has, therefore, become necessary to extend on cash withdrawal and deposit to these institutions.”
It will be recalled that the apex bank reviewed the cashless policy to reflect views of stakeholders.

Under the new arrangement, the daily cumulative limits which were hitherto N150,000 and N1 million were reviewed upward to N500,000 and N3 million on free cash withdrawal and lodgment by individual and corporate customer respectively.

The apex bank also reviewed downwards the processing fee for withdrawal above the limit.
While that of individual was reduced from 10 per cent to three per cent, corporate was reduced to five
per cent from 20 per cent.
The processing fee for lodgment for individual was also reduced from 10 per cent to two per cent, while that of corporate was reduced to three per cent from 20 per cent.
CBN, however, noted that the reduction of the various processing fees was temporary and would be subject to review every six months.
It emphasised that collection of charges by banks under the Cashless Lagos project would, however, take effect as scheduled on April 1.

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