Banks stop cash evacuation services to customers – Globasure News Updates

Commercial banks have stopped cash evacuation services in states where the Central Bank of Nigeria has commenced its cash-less policy.

The CBN commenced its cash-less policy in Lagos on April 1, 2012; and on July 1, 2013 in the Federal Capital Territory (Abuja), Abia, Anambra, Kano, Ogun and Rivers states.

Under the policy, the CBN pegged the daily cumulative cash withdrawal or deposit limit for individual accounts at N500,000 per day and N3m per day for corporate accounts.

The policy is aimed at reducing the amount of physical cash circulating in the economy, and encouraging more electronic-based transaction payments for goods, services, transfers among others.

According to a note to customers by GTBank, cash-in-transit lodgement and cash evacuation services will no longer be available to customers or merchants in the states where the cash-less policy is currently operational.

In an electronic mail to its customers last week, GTBank said the policy would drive development and modernisation of its payment system within these states as all individuals and corporate bodies would be encouraged to adopt electronic payment and banking options.

The bank further said the modalities for the implementation which had been operational in Lagos would be operational in other states, where the policy had been extended to.

GTBank said, “The following modalities, which are currently operational in Lagos State, will also be applicable in the newly-introduced states:  The cash-in-transit lodgement and cash evacuation services will no longer be available to customers or merchants.”

The bank explained, “For individual account holders, charges will apply when daily cumulative withdrawals and deposits are in excess of N500,000. For corporate account holders, charges will apply when daily cumulative withdrawals and deposits are in excess of N3,000,000. The cash-less policy applies to all accounts, including collection accounts i.e. all sub-accounts linked to the same account holder would be treated as one account for both corporate and individual accounts.”

The bank however noted that charges had been deferred in the newly-introduced states till October 1, 2013.

GTBank explained that exemptions had been granted by the CBN to lodgements and withdrawals for accounts operated by embassies, diplomatic missions, multilateral agencies, aid donor agencies, ministries, departments and agencies of government (revenue collections only), microfinance banks and primary mortgage institutions.

To ensure a seamless transition to a cashless economy, GTBank said it had made several safe and convenient alternative channels available for personal and business banking.

The CBN had on July 1 deferred the implementation of the cash-less policy charges on lodgements and withdrawals in Federal Capital Territory, Abuja, Abia, Anambra, Kano, Ogun and Rivers states till October 1, 2013.

The deferment of charges in the five states and the FCT where the cash-less policy was introduced on July 1 was to allow customers adjust to the new policy.

The applicable charges under the policy for deposit are: individual, two per cent on excess; corporate, three per cent. For withdrawal: individual, three per cent on excess; corporate, five per cent on excess will now be charged from the new date.

The cash-less policy, which was introduced in Lagos in January last year, specifies charges for individuals and corporate organisations that want to withdraw or lodge cash above prescribed thresholds.