CBN to extend N150,000 withdrawal limit nationwide from June 1

By The Rainbow

The Central Bank of Nigeria will extend the maximum limit of N150, 000 on third party cheque withdrawals nationwide with effect from June 1, 2013.

According to sources, the directive to this effect has been issued to deposit money banks across the country.

Under this arrangement, third party cheques above N150, 000 cannot be cashed over the counter and can only be received through the clearing house or deposited through in-house transfers.

The policy has been in place in Lagos State since last year, following the commencement of the pilot phase of the cashless policy in the state.

The target of this new policy by the CBN on cash-based transactions is to reduce banks the amount of of physical cash (coins and notes) circulating in the economy.

It is so aimed at and encouraging more electronic-based transactions for payments of goods and services.

Although seen as a good policy, it is still fraught with complaints in Lagos which was used for a pilot scheme as customers appear ignorant of payment platforms available and how to use them effectively without losing value.

Attempts to reach the CBN spokesman Mr. Ugochukwu Okoroafor, proved abortive.

But the regulator's Deputy Governor, Mr Tunde Lemo, last week confirmed the readiness of CBN to extend the cashless policy to some five more states and FCTA by July 1.

It was not clear at press time whether the directive and the deputy governor were referring to the same thing since the directive spoke about nationwide extension.

However, an official of one of Nigerian banks told THE RAINBOW they received the circular.