HOW IS CBN CASHLESS POLICY GOING TO AFFECT YOUR BUSINESS?
The Central Bank of Nigeria stated that with effect from January 1st, 2012, every cash transaction through the bank, be it cash deposit or withdrawal, across the counter, through the ATM or POS, has to be limited to a specific amount per day. For individuals, you are to transact cash to the maximum of N150,000 per day while for corporate entities, your daily maximum cash transaction is N1m. For individuals, every N1000 above N150,000 per day will attract a bank charge of N100 while for corporate entities, every N1000 above N1m cash transaction via bank per day will attract a bank charge of N200.

Although, Lagos as the pilot city for this policy was supposed to start feeling the slag hammer of the banks on the defaulters but the CBN has given the banks till 1st of March, 2012 to put in place all the necessary cashless transaction mechanisms and instruments.

The question is; "How is cashless policy of CBN in Lagos and subsequently the rest of Nigeria, going to affect your business?" and "How are you getting ready so as to prevent falling victim of unneccesary bank charges, come 1st of March 2012?" Let this thread be a medium for sensitization and sharing of individual experiences. No spamming! No Bull Shit!

I av a question o can we also wire as much as 1 million online in a day as private account holder without extra charges?

Bank wire is one of the media for cashless transaction, hence it'll not attract any penalty. The essence of the policy is to control cash handling and encourage cashless economy. This will save CBN the huge expense that it incure in the course of managing cash.

Do you mean that I will have to pay 10% on all amount above 150k.Is that not too much?

Well you can Learn how to join the Cashless Society by reading this writeup on etranzact PocketMoni.


Title: Why Business owners should go Cashless using etranzact PocketMoni


http://www.spreadmediang.com/etranzact/

You'll learn how to join the Cashless Policy before it hits you very hard.

serenegroup:

I av a question o can we also wire as much as 1 million online in a day as private account holder without extra charges?

why not, if u operate a current account, u can at the comfort of ur home or office vis internet banking

Just as one of the posters said above,you can wire any amount into any account of your choice as long as you are collecting it as cash, the service charge would not apply.The emphasis here is that u are not handling cash but there is a cash limit one can do when doing the online banking(for Zenith i think 300k).Bottom line is that people are encouraged to embrace alternate payment mediums (PoS,Atms,Neft,online banking etc).

Forcing such rule on people is another way of ripping people off their hard earned money. Do you think this policy will affect the rich men? Of course not!

CBN might have a good intention but I see no difference with the Fuel Subsidy removal. I think the most important thing to do is to educate the people on the advantage of using such things instead of forcing them to use it. Be implementing such laws, you need to make sure that everything is working. Till date, most of our ATM machines are having a great issues.

Nigeria should focus more on issues that affects an average citizens.

But as how it affects my business, I cannot say for now. I will wait and see

In as much as trust- which is the basic element of any business- is lacking, Nigeria will find it difficult to adopt the cash-less style.

@Krap

Just as one of the posters said above,you can wire any amount into any account of your choice as long as you are collecting it as cash, the service charge would not apply.The emphasis here is that u are not handling cash [b]but there is a cash limit one can do when doing the online banking(for Zenith i think 300k).[/b]Bottom line is that people are encouraged to embrace alternate payment mediums (PoS,Atms,Neft,online banking etc).

Quit the Krap!
Bottom line is YOU CANT WIRE 1million in a Day!
Otherwise, what is the meaning of the bolded part of your statement? It does not matter whether it is a Savings or Current account, daily limit is daily limit!

Even ATM has daily limit or dont they?

What we need going forward is for the banks to increase this daily limit 'cos if l need to pay a transaction of one Million naira, (say to buy building Materials) and my daily limit is 300K (Zenith, other banks are even smaller), that means l can only pay 300K, even if l do it online.

The remaining 700K, l either have to go and withdraw cash (and they charge me 70K! for no fault of mine) or
I wait every other day to do 300K,
Which implies a payment that is supposed to take me five minutes will end up taking 4days! (300 + 300 +300 +100)K = 1,000,000K

                                                 or

I cough out 70K (10% of the balance of 700K) to the banks!

Either way, it is backward thinking and stewpid!
We are always doing the first things last, just like in fuel subsidy removal!

Lastpage.

BTW: You cant even do "small cash-in-transit" for your brother anymore, just in case of emergency!
I have a 15yr old secondary school cousin who can call me at any moment and ask for a meager 10,000naira to buy something on school or when he is stranded. He is in a boarding school. I usually just respond by doing a C.I.T. to him but now they say they have to set-up "special CIT Agent" (additional cost!) who he will have to go to, for such funds! Crazy nut-heads who act first before thinking!

Talk about doing the right thing at the wrong time.

We have trust issues.

Power supply issues.

Fraud issues.

Illiteracy issues.

Economic issues.


Plus why must everything be forced on the populace without some other palatable alternative(s)?

Too much problems for naija now.

cashless wahala

subsidy palava

and Boko aram insurgency.


I pray for peace.

Don't be surprised if armed men start paying visits to traders homes like couple of years back

Well the implication of this is that Traders will start keeping huge amounts of money in their houses or farms and not in banks for quick access to raw cash,

This is a total ripoff, Hmm, I see armed robbers will start going to homes again very soon

Abeg Question o! If I withdraw or deposit $2,500.00 from my dom accout which is definately more than =N=150,000.00 , will I pay still pay the commission on the extras?

I hope this will work as designed. Wire transfers and online transactions will not be the problem. The main challenge will be business outlets that will not take paymens of tens of thousands and yet will not be equipped to process card payments. I have been in so many business outlets where you will expect to be able to use your card to pay and they will give you all sorts of excuses why they can only take cash. The annoying ones are those that will display that you can pay with your verve, Interswitch, orisirisi card, only to tell you after your transaction that their system is faulty and you must pay cash. The establishment that takes the cup is Cash and Carry in VI where they insisted on charging me an extra amount if I want to pay with my card.

I don't see any good in this policy! Or is there? Let them educate us

@lastpage
You are terribly misinformed as the intention of the policy. Like i said the emphasis here is CASH:to reduce the amount of physical cash being handled,one can wire money into any account and the service charges won't apply. And the C-I-T(Cash-In-Transit) companies u mentioned  are only required when u want to move cash from one location to another which has put off the use of bullion vans by the banks and not for cash transfers. The limit on online transfer serves its purposes if u ask me. I am only throwing more light on the policy and not to determine if it will succeed or not. Gracias!

lastpage:

@Krap
Quit the Krap!
Bottom line is YOU CANT WIRE 1million in a Day!
Otherwise, what is the meaning of the bolded part of your statement? It does not matter whether it is a Savings or Current account, daily limit is daily limit!

Even ATM has daily limit or dont they?

What we need going forward is for the banks to increase this daily limit 'cos if l need to pay a transaction of one Million naira, (say to buy building Materials) and my daily limit is 300K (Zenith, other banks are even smaller), that means l can only pay 300K, even if l do it online.

The remaining 700K, l either have to go and withdraw cash (and they charge me 70K! for no fault of mine) or
I wait every other day to do 300K,
Which implies a payment that is supposed to take me five minutes will end up taking 4days! (300 + 300 +300 +100)K = 1,000,000K

                                                 or

I cough out 70K (10% of the balance of 700K) to the banks!

Either way, it is backward thinking and stewpid!
We are always doing the first things last, just like in fuel subsidy removal!

Lastpage.

BTW: You cant even do "small cash-in-transit" for your brother anymore, just in case of emergency!
I have a 15yr old secondary school cousin who can call me at any moment and ask for a meager 10,000naira to buy something on school or when he is stranded. He is in a boarding school. I usually just respond by doing a C.I.T. to him but now they say they have to set-up "special CIT Agent" (additional cost!) who he will have to go to, for such funds! Crazy nut-heads who act first before thinking!

i dont believe online transfer limit is per day.

I believe its per transaction/transfer, so multiple online transfers will be needed.

Worst case, write a crossed check.

IrunmoleD1:

Abeg Question o! If I withdraw or deposit $2,500.00 from my dom accout which is definately more than =N=150,000.00 , will I pay still pay the commission on the extras?

doesnt affect FOREX cos we are not the ones printing them.

yamakuza:

doesnt affect FOREX cos we are not the ones printing them.

Copy that. Thanks

]I have a 15yr old secondary school cousin who can call me at any moment and ask for a meager 10,000naira to buy something on school or when he is stranded. He is in a boarding school. I usually just respond by doing a C.I.T. to him but now they say they have to set-up "special CIT Agent" (additional cost!) who he will have to go to, for such funds! Crazy nut-heads who act first before thinking!

Please ask questions when you dont understand, you might embarass yourself.

Its simple to beat the system. Lets say you wanna withdraw 450,000. Go with 2 of your friends to the bank and write them 150,000 check each. 3 of you make the withdrawal and you collect your cash, Thats simple.


And you if are paying 450,000 to someone's account, go alone to the bank you wanna make deposit. fill 3 tellers on different "Pay From" Names and amounts 150,000 each and pay to them.

As simple as ABC, if your bank dey vex, simply go with 2 friends and hand them 150k each and they pay ,

Note: Banks can never never stop how much money is received into any bank account. QED


Am not saying its bad to deposit checks if you have payments over 1m to someone, I welcome it and that's what I do from time immemorial.

Guys, u re missing the point! it is daily cumulative of N 150,000.00. If you like carry all your friends, once it passes the threshold of N 150,000.00 IT WILL DECLINE. PLEASE NOTE THIS!!!!

@leoMax
Wrong thinking bro. If we are to go by what the policy stipulates then u can't beat the system that i can say as a matter of fact.

Welldone guys good insight here.
Have been wracking my brains about how Nigeria with no regular Power supply , No functional ATMs system especially in the smaller towns  (I witnessed this last year during my visit) , Banking bureaucracy etc can cope with this sort of development when our people have not been adequately indoctrinated.

My other point is a question.

How do people who buy Dollars (in black market) in cash for over N1M  now transact their business with "Mallams" who must see cash before they part with their money.

My Uncle   back home has  2 kids  in College here in the U.S.  and always has to change Money with "Mallams" and pay into His Dommy account in SCB every month for transfer to His Kids accounts here. Had a discussion with last week and He is completely at a loss how this will work out in the new dispensation. Please cn anyone help!

LeoMax:

Its simple to beat the system. Lets say you wanna withdraw 450,000. Go with 2 of your friends to the bank and write them 150,000 check each. 3 of you make the withdrawal and you collect your cash, Thats simple.


And you if are paying 450,000 to someone's account, go alone to the bank you wanna make deposit. fill 3 tellers on different "Pay From" Names and amounts 150,000 each and pay to them.

As simple as ABC, if your bank dey vex, simply go with 2 friends and hand them 150k each and they pay ,

Note: Banks can never never stop how much money is received into any bank account. QED


Am not saying its bad to deposit checks if you have payments over 1m to someone, I welcome it and that's what I do from time immemorial.

Under the new rule, since the total amount Withdrawn that day is 450,000, you will pay 45,000 in bank charges.

abhosts:

Under the new rule, since the total amount Withdrawn that day is 450,000, you will pay 45,000 in bank charges.

The New Law says 150k cash withdrawal not check which I pay to someone. So what I did was Issue a check of 150k to 2 persons each and they cash it and I cash 150k myself. No limits exceeded.

krap:

@leoMax
Wrong thinking bro. If we are to go by what the policy stipulates then u can't beat the system that i can say as a matter of fact.

How, I already did.

Limaoscar:

Welldone guys good insight here.
Have been wracking my brains about how Nigeria with no regular Power supply , No functional ATMs system especially in the smaller towns  (I witnessed this last year during my visit) , Banking bureaucracy etc can cope with this sort of development when our people have not been adequately indoctrinated.

My other point is a question.

How do people who buy Dollars (in black market) in cash for over N1M  now transact their business with "Mallams" who must see cash before they part with their money.

My Uncle   back home has  2 kids  in College here in the U.S.  and always has to change Money with "Mallams" and pay into His Dommy account in SCB every month for transfer to His Kids accounts here. Had a discussion with last week and He is completely at a loss how this will work out in the new dispensation. Please cn anyone help!

i've never met my current aboki, though i got his number from a friend.

I transfer naira to his acct online, and he funds my dorm.

Abokis have gone digital!

yamakuza:

i've never met my current aboki, though i got his number from a friend.

I transfer naira to his acct online, and he funds my dorm.

Abokis have gone digital!

Correct. Thanks for the insight, I hardly keep money in Naira myself. I only transfer what I intend to spend from my Dorm to Checking from online banking. Digital Abokis even have solutions