CBN exempts federation accounts, microfinance banks, ministries, others from new Cashless Policy

The Central Bank of Nigeria (CBN) has exempted all revenue-generating accounts of government agencies, ministries, microfinance banks and several others from charges on cash withdrawal and deposits as imposed by the new cashless policy.

According to the new circular addressed to all Deposit Money Banks (DMBs), the CBN disclosed that exemption is given until March 30, 2020 when it would be reviewed.

The Details: In the circular signed by Sam Okojere, the Director, Payment System Management Department, CBN stated that all embassies, diplomatic missions, multilateral and aid donor agencies in Nigeria, as well as revenue-generating accounts of government agencies, are exempted from charges on cash withdrawal and deposits with regard to the implementation of the cashless policy.

The apex bank also disclosed that the float accounts of Mobile Money Operators and the accounts Microfinance Banks (MFBs) and Primary Mortgage Institutions (PMI) keep with DMBs are equally exempted from the charges on cash withdrawal and deposits.

According to the CBN, the exemptions would last until March 31, 2020, when it would be reviewed.

The CBN circular reads: “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 Backstory: Recall that the CBN made the announcement earlier on September 18, imposing new charges on withdrawals and Deposits.

According to the apex bank, extra charges (3 to 5%) would be imposed on cash deposits and withdrawals (by individuals and companies) that exceed the official limits of N500,000 and N3 million, respectively.

Also, the CBN stated that partial implementation of the policy would immediately take effect in the Federal Capital Territory and six other states namely: Abia, Anambra, Kano, Lagos, Ogun, and Rivers. Nationwide implementation of the same policy is expected in March 2020.

Meanwhile, the announcement drew widespread criticism from Nigerians who described the extra charge for withdrawing/depositing money as unnecessary.

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