Regulatory Alerts2011-04-28 | REF: COD/DIR/GEN/CIT/05/031Industry Policy On Retail Cash Collection And Lodgement (IITP/C/001)
In an effort to reduce cash usage, manage costs effectively, and address security and money laundering concerns, Nigeria's Central Bank has directed several measures. Starting June 1, 2012, individual and corporate customers will face daily cumulative limits on free withdrawals and lodgments at DMBs, with additional charges for exceeding these limits. Banks must cease offering cash in transit lodgment services to customers from the same date. Third-party cheques over N150,000 should not be encashed directly by banks but through the clearing house, with a fine applied for non-compliance. The policy initially applies to select regions and will be extended nationwide at a later time. To achieve POS interoperability, exclusive acquirer agreements are prohibited, with penalties for any breaches. Lastly, all financial institutions must adhere to the outlined measures, and the Banking Supervision Department will monitor compliance.