CBN imposes limits, penalty on cash transactions….N150,000 for individuals; N200,000 for corporate organisations

From June 2012, individuals that make cash withdrawal or deposit above N150,000 would pay a fine of N100 per extra N1,000, while corporate organisations that make cash withdrawal or deposit above N1 million would pay fine of N200 per extra N1,000.

These limits for free cash withdrawal and deposits were part of a new policy aimed at reducing the high usage of cash in the economy announced by the Central Bank of Nigeria, CBN, on April 28.

So let me get this straight. If I want to withdraw say N1m, I will pay the bank N8, 500 as penalty? For withdrawing my own money? And no third party cheques above N150,000 across the counter? How will this work? I'm really trying to make sense out of this, won't this move cause inflation or something? And won't it result to people keeping money at home instead?

Read this CBN policy and tell us what you think.
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