Cash-Less Lagos: Can We Survive It?…All you should know about this new policy
“We won’t be allowed to carry cash again!!, you will be arrested if you are found with cash!!, You are a criminal if you carry cash!!, You will be shot if you carry cash!!..”
These are some of the rumors that have been circulating around town with regards to the “New Cash-less Policy” that is being introduced by the government, and liveofofo.com in collaboration with www.cashlesslagos.org has decided to help state some of the facts, and end the myths circulating around town.
What is Cash-Less Lagos?
It is a new policy initiative by the CBN to “reduce” not totally eliminate the high usage of cash (i.e notes) in circulation in the economy. The CBN through this policy is trying to encourage people to use electronic transactions more. It is going to be implemented first in Lagos, before other parts of the country, hence the name “Cash-Less Lagos”.
What are the processing fees/charges?
Below are the processing fees/charges for both individual and corporate accounts.
- Processing fee charge for individuals on withdrawals is 3%
- Processing fee for corporate withdrawal is 5%
- Processing fee for individuals on lodgment is 2%
- Processing fee for corporate on lodgment is 3%.
Can I withdraw more than N500,000?
YES! You still have no limits on the amount of cash you can withdraw from the bank.
However, if you wish to withdraw more than N500,000 per day (individual) or N3 million (corporate), you will be charged a processing fee.
Why Cash-Less Lagos?
There are many reasons why it is better to reduce the volume of cash based transactions in the economy.
- There is more safety in transferring money electronically.
- You are less likely to get robbed than when you carry large amounts of cash around.
- Electronic transfers are more convenient and easier to track since there is a record of the transactions.
- Less Corruption: It encourages transparency which discourages corruption.
What are the alternatives to CASH?
- Internet Banking
Transfer money from bank to bank using internet banking. Safe, conveninent and instant!
· Debit & Credit Cards
Pay at shops or online with your card. Or if you really need cash, withdraw from an ATM
· Mobile Banking
Keep your money on your phone. Send and receive money with only a phone number.
According to the CBN Governor, Lamido Sanusi; “this is working in different parts of the world – in fact in Africa like Kenya, Kampalla. Transactions are done there by primarily using cards and we think that Nigeria should not be an exception; we think Nigeria is a very good market with 150 million people. We should allow transactions to be carried out using cards. We should reduce the rate at which we carry cash around which is cumbersome; it is very costly for the banks, costly for the system”.
Finally, some of the questions have been answered. The debates continue in the media, as more and more people share their views on the issue
What are your views?. Share them here on/with liveofofo.com