The Central Bank of Nigeria, CBN has made a U-turn on the implementation of its recently re-introduced cashless policy.

The bank had in February announced additional charges on cash transactions on deposits and withdrawals above a threshold of 500,000 Naira.

Implementation of this policy started on April 1, 2017.

But in a circular on Friday, the regulator instructed commercial banks to revert to old charges and refund customers who had been debited.

In the February circular, CBN directed banks to charge 5% and 10% for deposits and withdrawals above 40 million Naira in the corporate category.

In the circular, signed by Dipo Fatokun, who is the Director, Banking and Payments System Department of CBN, the apex bank said the existing policy before the announcement of the new policy shall remain in place in Lagos, Ogun, Kano, Abia, Anambra, Rivers and Abuja.

“You will recall that a directive was issued on the nationwide implementation of the cashless policy vide our circulars with reference numbers BPS/DIR/GEN/CIR/04/001 dated February 21 and BPS/DIR/GEN/CIR/04/002 dated March 16,” the circular read.

“Please note that the new withdrawal and deposit processing fee charges above the threshold, as contained in the circulars referenced above, are hereby suspended until further notice. The position of the policy shall now revert to the status quo ante,” it added.

The old charges to be reverted to include 3% processing fee for withdrawals above 500,000 Naira in the individual category and 5% for withdrawals above 3 million Naira.

“The new policy already applied effective April 1, 2017 as contained in the circulars in reference above should be reversed and the old charges be applied. All necessary refunds should be made accordingly,” the circular said.