Reps order CBN to suspend new charges on deposits, withdrawals

The House of Representatives on Thursday asked the Central Bank of Nigeria to suspend its implementation of the new charges imposed on cash deposits and withdrawals following the uproar that has greeted the apex bank’s decision.

The House noted that implementation of the new cashless policy on deposits which has took effect from September 18 should be suspended pending appropriate and extensive consultations with relevant House committees.

Adopting a motion on the matter sponsored by Rep. Benjamin Kalu, the House mandate its Committee on Banking and Currency to interface with the Central Bank to ascertain the propriety, relevance and the need for the implementation of the new cashless policy, considering the prevailing economic situation of the country.

The committee is expected to report back to the House within four weeks.

Leading debate on the general principles of the motion, Rep. Kalu said the House is aware that the Central Bank introduced a policy on cash-based transactions which imposes a cash handling charge on daily cash withdrawals that exceed N150 million for individuals and $18 million for corporate bodies in 2012.

He noted that the charges already imposed on cash withdrawals have drastically affected cash deposits in banks across the country.

According to him, the policy on cash withdrawals from banks is aimed at reducing and not eliminating the amount of cash circulating in the economy and encourages more electronic-based transactions.

He further stated that the cash policy was introduced for a number of key reasons including the need to drive development and modernization of the nation’s payment system in line with the Vision 2020 goal of being amongst the top 20 global economies, reduce the cost of banking services (including cost of credit) and drive financial inclusion by providing more efficient transaction options and greater reach.

The House member said that a variety of benefits are expected to be derived by various stakeholders from an increased utilization of e-payment systems.

But, the House after debating the motion unanimously resolved that the implementation of the new policy be suspended forthwith.