Additionally, exemptions for embassies, diplomatic missions, and donor agencies have been removed, meaning these entities will now be subject to the revised withdrawal and deposit rules.
However, revenue-generating accounts of federal, state, and local governments, as well as accounts of microfinance banks and primary mortgage banks, remain exempt from the withdrawal limits and fees for excess withdrawals.
The CBN says the rationale for these changes includes reducing cash-management costs for banks, addressing security concerns, and minimising risks tied to money laundering and illicit cash flows.
The new cash policies are set to take effect from January 1, 2026.
For years, the CBN has been priming Nigeria for a transition to a cashless economy, and the new deposit and withdrawal policy is another step in its strategy. The earliest move was in 2012 with the introduction of the cashless policy, which was supposed to fully transition the economy by 2020.
Read more: https://techpoint.africa/news/cbn-deposit-and-withdrawal-policy/
