No. There will still be cash in circulation. The cash policy aims at reducing the usage of cash and increasing the use of alternatives to cash due to the negative consequences of cash usage.
The cash policy takes effect on January 1, 2012 in Lagos as pilot
Nationwide implementation of the policy will commence from June 1, 2012
The charges on cash deposit/withdrawal above the set limit will begin FROM March 30, 2012.
3rd party cheques can be cashed over the counter till March 30th 2012.
You will be charged 10% of the amount withdrawn or deposited over the limit.
Charges will be applied daily, since it requires the total daily amounts above the limit.
The policy takes immediate effect. However, Banks are encouraged to accommodate their customers and educate them that from March there will be no accommodation.
You will be charged the processing fee on N50,000.00 ONLY
No. The limit is on daily cumulative cash withdrawal/deposit AND NOT per withdrawal. So, If the cheques are going to be lodged into an account is allowed but if the cheques are for withdrawals you breach the policy.
If a representative and signatory to a corporate account present a cheque on behalf of his company, it is considered a corporate withdrawal and he can cash up to N1, 000,000 cumulatively on that account.
Yes, you can withdraw more than once and NOT breach the policy provided your cumulative withdrawals per day do not exceed N150,000
There will be no reports on individuals or corporates that exceed the limits. It is not illegal to exceed the limits; it is just that there will be a processing charge applied.
Any of the under listed channels can be used for electronic transactions instead of cash;
You can go to your bank and make enquiry on any of the channels, you will be guided accordingly. The CBN also licensed 11 mobile payment operator to roll out mobile payments
You can use any one that suits your need. You can equally use more than one or all depending on your needs, but it is not a must for you to use all.
If you ask your bank they will give you a POS terminal, most likely free of charge depending on your transaction volumes. You will only be paying 1.25% of the transaction (amount spent by customer) subject to a maximum of N2000 per transaction.
The industry has endorsed four manufacturers for supply of Point of Sale terminals - PAX, Bitel, Ingenico, and Verifone - with negotiated discounts and local support arrangements. A PoS can be purchased from any of these four for as low as N45k per terminal. However, parties are free to purchase PoS terminals from any manufacturer, so far they meet the PoS specifications in the Point-of-Sale guidelines.
It saves you from robbery, theft, cost of cash management, hassles of counting cash, looking for change, getting more customers that do not have cash but card, access to more revenue from value added services of POS such as bills payment and airtime vending, etc
Your account as a merchant that accept payments through POS will be credited on T+1. This means that amount for today’s transactions will be credited into your account tomorrow (if tomorrow is a working day).
PoS terminals are being deployed based on demand and need by various banks. If you are interested in obtaining a PoS, please talk to your Bank for more details and timelines.
The fee is distributed to different parties for playing different roles in ensuring the POS system works well.
Training will be provided by the acquirer’s payment terminal service provider (PTSP). Part of the deployment process is to ensure a practical training of how to use the POS for the merchant and their staff.
No. The money of the user is safe as the devices do not hold the money. The money is in the user’s account in a bank. The person that stole them cannot use them to access your account since they don’t have your PIN number and other information.
In terms of infrastructure, CBN is working with Nigeria Communication Commission and telecoms to ensure that there are dedicated communication links for the POS system. All POS’ must have a minimum of 2 Sims e.g. Glo and MTN. This doesn’t guarantee 100% connectivity but it does increase the uptime of the POS system. In terms of power, there is a minimum of 24 hours battery life. POS terminals also come with car chargers. Infrastructure in Nigeria is not perfect but we can be creative and work around the constraints.
The ATM fraud was prevalent when Nigeria was using magnetic stripe cards. Nigeria migrated all their cards to chip+PIN which is more secured and drastically reduced the fraud level. With Chip and PIN the chances of fraud are reduced, provided you keep your PIN number secret. The CBN ATM Fraud Prevention Committee comprising banks, EFCC, NIMC, Interswitch, Valucard, CPC, PCC and many others deliberate monthly to make our e-payments more secured.. Nigeria electronic Payment Fraud Forum has been inaugurated to share strategy for fraud prevention.
The literacy required is basic numerals. Many Nigerians can use a mobile phone, so they can do mobile payments. They can also recharge their phones, so they can surely enter PIN into their phones or POS. In addition, biometrics are being used in some ATMs and POS. It is important to note that literacy is different from numeracy; Nigerians are quite numerate especially when currency is involved; and what is required for these electronic systems is numeracy.
This is beyond the cash policy. If there was no cash policy, they’d just collect your money. It would even be much easier. Also, robbers can’t carry around POS systems as these are only given to businesses and associations.
Customers are advised to always monitor their account activities, as a matter of good hygiene. Always collect your receipts for transactions; have alerts on your account, review yours statements, etc
We are reviewing this to ensure how various stakeholder needs can be addressed, while still ensuring the objective of the policy is achieved. Some retailers are looking at providing incentives to their customers to pay electronically (just like airlines who give discount on tickets that are paid for online) in order to encourage them to use mobile payments (or other electronic means) for these micro amounts.
Bank still deducts COT in addition to the commission. CBN is currently reviewing the guide to banking charges, to ensure an open and transparent view of the various banking charges. It is also important to note that some banks already offer ZERO COT accounts.
T+1 only apply to cards issued in Nigeria. For card issued outside Nigeria, the settlement cycle should be about T+3 maximum. CBN is reviewing this settlement cycle with the various key stakeholders to see how it can be aligned in line with the local settlement framework.
NIBSS instant payment is new and it enables people to transfer funds immediately between two accounts within same bank or in different banks. This is currently being offered by a few banks.
No. they will still be relevant. The cash policy means “less cash” not “no cash”. The amount of cash in the system will just reduce.
CBN has already issued a circular to break exclusivity of card. Within Nigeria, all cards will be accepted at any terminal. There will be no more “only MasterCard or VISA accepted here”; every POS terminal will accept any of the cards issued in Nigeria.
The 1.25% transaction fee will be paid by the merchant.
The Payments System Management Bill and Financial System Ombudsman Bill are before the National Assembly for enactment. Evidence Act is also undergoing a review
Market sensitization has been taking place in places such as Alaba and Ojuwoye market. The grassroots are being educated on the policy and it will carry on intensively. CBN is also working with the Agric department to ensure that markets that have not been covered yet are not left out. The new policy does not require high levels of literacy. If they can already use their phones, they’ll be able to use systems such as mobile banking. In terms of employment, it is not set to cut jobs but possibly increase them. This is through the need for merchants to train and ensure proper use of POS systems and other related jobs. POS systems can also be used to sell recharge cards.
It is any arrangement now which was developed with considerations of all the experiences in the past. CBN has released a Guidelines and Standards for POS operations. It also appointed NIBSS to serve as a central aggregator for all POS transactions. In addition, Payment Terminal Service Providers 96 companies) were licensed to maintain/support POS. With all these, the POS system is supposed to be up and running almost all the time.
No. we are spending more money printing and destroying notes. It might even strengthen the naira.
The casual workers will also obtain a debit card from their banks to access their money 24/7 or a Prepaid card.
CBN is putting plans in place to ensure that the policy is fully adhered to. There is going to be regular monitoring and oversight of banks. Those who are found to be violating the policy will be dealt with accordingly.
Neither the customer nor the merchant will loose his money or goods. Procedures for handling such disputes have been established by banks. The merchant can call his bank to find out the status of the transaction. Based on the response from his bank, he can release goods or customer will get a reversal of the debit in his account.
One of the main objectives of the cash policy is to reduce costs, with the intent of passing on the benefits to the customers – in the form of better service, reduced cost of service, better lending rates, and increased financial penetration, amongst other things.
The Processing fee goes to the banks. But how it is used will be reviewed before the effective date of the policy.