The Central Bank of Nigeria says it is stopping daily Cash Reserve Ratio debits and will be adopting an updated Cash Reserve Requirement mechanism.
The CBN noted that the move is intended to facilitate banks’ capacity for planning, monitoring, and aligning their records with the apex bank.
The CBN made this known in a circular titled ‘Cash Reserve Requirement Framework Implementation Guidelines’ signed by its Acting Director, Banking Supervision Department, Adetona Adedeji.
The percentage of cash required to be kept in reserves as against the bank’s total deposits is called the Cash Reserve Ratio.
The implementation of the new Cash Reserve Requirement framework will follow a structured process, as outlined by the CBN.
The CBN added that it will provide banks with details of the applied charges and their underlying computation rationale.
