Retired CBN official unveils why cashless policy in 30 states was suspended after takeoff
It would have amounted to double tragedy in the face of the excruciating economic pains caused by recession and height of insensitivity on the side of the Central Bank of Nigeria (CBN) if it had gone ahead with the Cashless Nigeria Policy in remaining 30 states of the federation. This was the position of experts who barred their minds on the matter over the weekend. The apex bank had on Friday announced the immediate suspension of the policy in those states without any reason.
But a retired economist of the CBN told Business Hilights on Sunday that “The CBN may have considered the ailing state of the economy caused by recession to shelve the policy from going nationwide”.
“Recall that by the time the timetable for the Cashless policy was unveiled some years ago, it was based on all things being equal and now, nobody can comfortably say that all things are equal as far as the economy is concerned.
The former banker who pleaded anonymity added that “As things are now, any policy that will add more pains to Nigerians cannot enjoy acceptability”.
The reversal of the policy came exactly 21 days after the CBN commenced the nationwide implementation of the cashless policy on April 1, 2017.
However, said the implementation of the policy would remain in Lagos, Ogun, Kano, Abia, Anambra and Rivers states, as well as the Federal Capital Territory.
In a circular signed by the Director, Banking and Payment System, CBN, Mr. Dipo Fatokun, the regulatory agency ordered Deposit Money Banks to revert to the old charges and refund customers who had been debited for withdrawing and making cash deposits above the limits allowed under the policy.
The CBN had earlier announced new charges on deposits and withdrawals above a threshold of N500,000 for individuals and N3m for corporate organisations.
The bank had fixed 1.5 per cent and two per cent for deposits above N500,000 and N1m in the individual category.
The circular read in part, “You will recall that a directive was issued on the nationwide implementation of the cashless policy vide our circulars with reference numbers BPS/DIR/GEN/CIR/04/001 dated February 21, and BPS/DIR/GEN/CIR/04/002 dated March 16.
“Please note that the new withdrawal and deposit processing fee charges above the threshold, as contained in the circulars referenced above, are hereby suspended until further notice. The position of the policy shall now revert to the status quo ante.
“The old charges to be reverted to three per cent processing fee for withdrawals above N500,000 in the individual category and five per cent for withdrawals above N3m.
“The new policy already applied effective April 1, 2017 as contained in the circulars in reference above should be reversed and the old charges be applied. All necessary refunds should be made accordingly.”
