CBN targets retrieving 65% liquidity from the system with cashless policy

The Central Bank of Nigeria says it’s new policy of re-introduction of charges on cash withdrawals is aimed at further reducing the volume of liquidity in the system.

The bank is already increasing the tempo in sale of financial instruments, including bonds and treasury bills, as the already known means of reducing the volume of cash outside the banking system.

It therefore insisted that the April 1, 2017 deadline for the implementations of the directive, mandating banks to deduct some charges on cash withdrawal up to the tune of N500,000 will not change.

The apex bank on its website on Wednesday, stated that by the time the rest of the states in Nigeria fully embrace cashless society concept, about 65 per cent of the money in private hands would have been returned into the banking system.

The apex bank had earlier, in a circular to all Deposit Money banks, directed that with effect from April 1, 2017, banks in Lagos, Ogun, Anambra, Abia, Kano, Rivers and the Federal Capital Territory, where there is a noticeable acceptance of the electronic payments, via ATM, PoS and online payments applications, would start charging customers for cash withdrawal services

But some customers have faulted the imposition of the charges on them, citing the poor services from most of the platforms as a reason for rejecting the policy

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They said the ATM machines across the country are grossly inadequate for the population of bank customers in the country.

However, chief executive officer, Electronic Payment Providers Association of Nigeria (EPPAN) Mrs. Regha, commended the CBN for taking the bold step in putting the more than 10-year-old cashless policy into practical use.

“It (reintroduction of the cash processing fees) is one of the known means to help the CBN reduce the cost of managing cash supply in the system.

“Nigeria has developed to a point of achieving results in that regard, in comparison with other countries of the same status,” she said.

On how to improve on the platform devices, she said that would be feasible as soon as there is an improvement on power supply in Nigeria.

The customers have also complained of losses that they bear on the frequency of cards’ seizure through most of the ATMs and for which they are forced to pay N1,000 per seized card.

 

 

 

 

 

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