In Nigeria today, cash dominance is prevalent in the economy with the under listed implications:

• Cost of Cash Management to the banking Industry
• Security
• Money Laundering
• Counterfeit among others

CBN with Bankers Committee has adopted a new policy to reduce the high usage of cash, moderate the cost of cash management and encourage the use of electronic payment channels.

The policy shall apply to both private and public sectors transaction.

Click here for more information.

Frequently Asked Questions

Does the cash-less policy mean that cash will no longer be spent?

No. Cash will still be spent and acceptable widely. The policy only aims at reducing the heavy usage of cash and increasing the use of alternatives to cash due to the negative consequences of cash usage.

Will I still be able to access my money in the bank?

Yes. You will still be able to access your money in banks without restrictions. However, if you wish to withdraw cash above the daily free cumulative limit of N500,000 and N3 million for Individuals and corporate organizations respectively, you will be charged a service fee on the amount above the cumulative limits with effect from April, 2012.

Can 3rd party cheques still be cashed over the counter?

3rd party cheques can be cashed over the counter. However, from April 1st 2012, amounts over N150,000 will need to be paid into an account.

Does the third party cheque rule apply to signatories of corporate accounts?

No, a signatory to a corporate account can withdraw as much as they want, but over three million will attract charges.

How much will I be charged when I deposit or withdraw cash above the limit?

For individuals, you will be charged 3% on the amount withdrawn over the limit and 2% for deposits over the limit. For corporate organizations, you will be charged 5% on withdrawals over the limit and 3% on deposits over the limit.

If I withdraw N600, 000 which is above the limit how will I be charged?

You will be charged the processing fee on N100, 000 ONLY which is 3% of 100,000 - N3000.

Can I issue multiple cheques of N500,000 each on the same day and not breach the policy?

No. The limit is on daily cumulative cash withdrawals/deposits AND NOT per withdrawal. So, If the cheques are going to be lodged into an account it is allowed but if the cheques are for withdrawals you breach the policy. We recommend instead you do an electronic transfer which is instant.

Can I withdraw more than once but not exceeding N500, 000 each?

Yes, you can withdraw more than once and NOT breach the policy provided your cumulative withdrawals per day do not exceed N500,000

What are the alternatives to cash payments?

Any of the under listed channels can be used for electronic transactions instead of cash;

• Card payments
• Point-of-sale (POS) terminals
• Mobile banking system
• Internet banking
• Multi-functional ATM
• Electronic Funds Transfer systems
• Direct debit for regular in nature bills payment

How do I begin to use any of the alternative payment channels?

Visit any FirstBank branch and make enquiries on any of the channels, you will be guided accordingly.

How do I get a POS as a merchant and what does it cost me to have it? Is there any charge on the amount spent by a customer in my shop?

As a merchant, we will give you a POS terminal at no cost. Please speak to our customer service agents to see if you qualify. You will only be paying 1.25% of the transaction (amount spent by customer) subject to a maximum of N2000 per transaction. The POS also has value added services that enables you earn commissions on airtime recharge and bill payment services.

If a POS or mobile phone is stolen does it mean that all the money of the user of such devices are stolen?

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.

Do you have any issues on any of the above?

Call/ Email FirstContact for speedy resolution.