CBN Cash-Less Economy

The Central Bank of Nigeria (CBN) has introduced e-based transaction system which stipulates a ‘’cash handling charge’’ on a daily cash withdrawals that exceed N500,000 for individuals and N3,000,000 for corporate bodies. This is aimed at reducing the amount of cash in circulation but not completely eliminating cash transactions for the payment of goods and services. In other words if your transactions exceed this daily limit you will pay charges for that amount over which it exceeded these limit. The aim for this is to achieve the following:
1. To bring about speedy development in the Nigerian Economy and moderate payments system in line with vision 2020. That is to groom the economy to be one of the top 20 Economies in the World. Cash-less economy is a key enabler for the attainment of this vision.
2. For safety purposes: This will bring about less cash carriage hence less risk of been attacked by armed robbers, fire incidence and flooding activities.
3. Reduce cost of cash handling: The movement of cash is costly along the value chain- from CBN and the Banks and then to the customers, the cost of doing so is therefore reduced.
4. Monetary Policy Improvement: The effectiveness of monetary policy is made possible at controlling inflation and driving economic growth when money in circulation can be curtailed.
5. Reduce Corruption: High cash usage engenders corruption leakages and money laundering amongst other cash-related fraudulent activities.
6. Fast Transactions: The e-payment system has been proved to be the fastest means of payment hence fastest means of transactions.

This framework has been launched in Lagos commencing from March 30th,2012. It will commence in other states from January, 2013. Individuals will need to possess Current account to benefit from this framework. If you find this information useful share it with friends and Family members, you can do so through the means provided below. Visit CBN website for any further query.
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