Cashless Policy: CBN Excludes Government Accounts, MFBs, Others

• Cashless Policy: CBN Excludes Government Accounts, MFBs, Others

The Central Bank of Nigeria (CBN), has excluded all government revenue-generating accounts of the Federal, State and Local governments from its new cashless policy.

The other exempted accounts are; Embassies, Diplomatic Missions, Multilateral Agencies, Aid Donor Agencies in Nigeria, Ministries, Departments and Agencies of Government (revenue collection only).

Mobile Money Operators (Float accounts only), Micro Finance Banks (MFBs) and Primary Mortgage Institutions (PMls) accounts with DMBs are also exempted from the new policy.

In a circular signed by the Director, Payment System Management Department, Mr. Sam Okojere, the apex bank stated that until Monday, March 30, 2020, the accounts would not be charged on all their withdrawals, including deposits.

By the aforementioned date, the cashless policy would be reviewed, and the accounts may now be included in the cashless policy.

“Further to our previous circular on ‘Implementation of the Cash-less Policy’, please be informed that currently, the following are the existing exemptions until March 31, 2020, when it will be reviewed.

“Revenue generating accounts of the Federal, State and Local Governments; embassies, Diplomatic Missions, Multilateral Agencies, Aid Donor Agencies in Nigeria, Ministries, Departments and Agencies of Government (revenue collection only); Mobile Money Operators (Float accounts only) and Micro Finance Banks (MFBs) and Primary Mortgage Institutions (PMls) accounts with DMBs,” the statement reads.

Recall that on Wednesday, September 18, 2019, the CBN had disclosed its intention to impose fresh charges on bank customers’ withdrawals and deposits.

As stated by the apex bank, withdrawal from any DMB by an individual account owner will attract 3 percent charges when it is beyond N500,000 and 2 percent on deposit; while corporate account owners will pay 5 percent processing fee on withdrawals more than N3,000,000 and 3 percent processing fee on deposits more than the same amount.

For electronic transactions, the CBN reduced Merchant Service Charge (MSC) from 0.75 percent capped at N1,200 to 0.50 percent capped at N1,000.