Cashless Policy: CBN stops cashing of third-party cheques above N150,000

The cash-less policy of the Central Bank of Nigeria enters a new phase today (Monday) as the maximum ceiling of N150,000 placed on conversion of third-party cheques to cash by individuals takes off.

The implication is that any cheque above N150,000 originating from a third party must be lodged into the beneficiary’s account.

The policy, according to the CBN, is one of the measures being put in place to discourage the use of cash in the system.

Consequently, some deposit money banks have sent text messages to their customers to intimate them of the new policy.

A message sent by one of the banks reads, “Dear customer, kindly note that from June 1, 2013, third-party cheques over N150,000 cannot be cashed over the counter but should be lodged into your account.”

Similarly, the CBN has announced the extension of the coverage of the cash-less policy to the Federal Capital Territory, and five states, Kano, Rivers, Abia, Ogun and Anambra as from July 1, 2013.

Consequently, it has directed branches of banks in the affected states to begin an enlightenment of their customers on the cash-less policy, including the existing limit of cash withdrawals and deposits for individuals and corporate bodies, as well as available e-payment options.

The CBN also stated in a circular conveying the instruction that banks should embark on training of employees on the cash-less policy in order to provide answers to enquiries and handle issues/customers complaints as well as provide advice on the policy.

The central bank had introduced a new policy on cash-based transactions, which stipulates a ‘cash handling charge’ on daily cash withdrawals or cash deposits that exceed N500,000 for individuals, and N3m for corporate bodies.

The new policy on cash-based transactions in banks aims at reducing the amount of physical cash circulating in the economy and encouraging more electronic-based transactions