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3 years after, CBN returns charges on cash deposits, withdrawals from N.5mn
Three years after it stopped the charges following introduction of cashless policy, the Central Bank of Nigeria (CBN) has announced the reintroduction of bank charges on certain categories of cash deposits and withdrawals starting from transactions in the region of N500,000
The development was contained in a circular to all Deposit Money Banks (DMBs) posted on its website.
Banks will from April 1, begin to charge individuals 1.5 per cent and two per cent for deposits and withdrawals between N500,000 and N1m.
The CBN said the decision to reintroduce the charges on cash deposits was part of the review of charges on deposits and withdrawals under the cashless policy taken at the Bankers’ Committee meeting, which held in Abuja two weeks ago.
The circular, signed by the Director, Banking and Payments System Department at CBN, Mr. Dipo Fatokun, stated that the committee decided that the cashless policy should be extended to the remaining 30 states of the federation.
CBN further directed that with effect from April 1, 2017, banks in the states where the cashless policy was already operating, Lagos, Ogun, Anambra, Abia, Kano, Rivers and the Federal Capital Territory, would begin to impose charges on deposits and withdrawals above N500,000.
The circular explained that individuals depositing or withdrawing between N1m and N5m will be charged two per cent and three per cent, respectively.
For amounts above N5m, banks will charge such individuals three per cent and 7.5 per cent for deposits and withdrawals, respectively.
However, with regard to corporate customers, the CBN stated that deposits and withdrawals under N3m would not attract any charge, but that such customers depositing or withdrawing between N3m and N10m would be charged two per cent and five per cent, respectively.
Besides, deposits and withdrawals between N10m and N40m, customers will be charged three per cent and 7.5 per cent, respectively. Deposits or withdrawals above N40m by corporate customers will attract a charge of five per cent and 10 per cent, respectively.
The new policy on charges will be implemented in selected states on May 1 and August 1, this year; while the total implementation will be concluded on October 1.
Other decision of the Bankers’ Committee include that income generated from the processing fees above the allowable cash limits would be shared between it and the banks in the ratio of 40:60.
The apex bank also made it clear that existing exemptions to the policy such as revenue generating agencies of the federal, state and local governments (for lodgements) will be sustained. Also exempt from the processing fees are embassies, diplomatic missions, multilateral and aid agencies.