The Central Bank of Nigeria on
Thursday announced the
reintroduction of bank charges on
certain categories of cash deposits and
withdrawals.
This came about three years after the
apex bank stopped the charges.
In a circular to all Deposit Money
Banks posted on its website , the
regulator 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 .
It said the decision was taken at the
Bankers’ Committee meeting, which
held in Abuja two weeks ago.
The circular , signed by the Director ,
Banking and Payments System
Department , CBN, Mr. Dipo Fatokun,
stated that the committee decided that
the cashless policy should be extended
to the remaining 30 states of the
federation.
It also 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 N 500 ,000 .
Banks will from that date begin to
charge individuals 1 . 5 per cent and
two per cent for deposits and
withdrawals between N 500 ,000 and
N1 m .
According to the circular, individuals
depositing or withdrawing between
N1 m and N 5 m will be charged two per
cent and three per cent, respectively.
For amounts above N 5 m , banks will
charge such individuals three per cent
and 7 . 5 per cent for deposits and
withdrawals, respectively .
With regard to corporate customers,
the CBN stated that deposits and
withdrawals under N 3 m would not
attract any charge , but that such
customers depositing or withdrawing
between N 3 m and N 10 m would be
charged two per cent and five per
cent, respectively.
Also for deposits and withdrawals
between N10 m and N 40 m , customers
will be charged three per cent and 7 . 5
per cent, respectively. Deposits or
withdrawals above N40 m by corporate
customers will attract a charge of five
per cent and 10 per cent , respectively .
According to the CBN, 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 .
The regulator noted that the committee
agreed 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 .
However , the CBN said 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 .
The CBN directed lenders to train their
employees to enlighten customers on
the new policy .
Source: Punch
The Central Bank of Nigeria on
Thursday announced the
reintroduction of bank charges on
certain categories of cash deposits and
withdrawals.
This came about three years after the
apex bank stopped the charges.
In a circular to all Deposit Money
Banks posted on its website , the
regulator 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 .
It said the decision was taken at the
Bankers’ Committee meeting, which
held in Abuja two weeks ago.
The circular , signed by the Director ,
Banking and Payments System
Department , CBN, Mr. Dipo Fatokun,
stated that the committee decided that
the cashless policy should be extended
to the remaining 30 states of the
federation.
It also 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 N 500 ,000 .
Banks will from that date begin to
charge individuals 1 . 5 per cent and
two per cent for deposits and
withdrawals between N 500 ,000 and
N1 m .
According to the circular, individuals
depositing or withdrawing between
N1 m and N 5 m will be charged two per
cent and three per cent, respectively.
For amounts above N 5 m , banks will
charge such individuals three per cent
and 7 . 5 per cent for deposits and
withdrawals, respectively .
With regard to corporate customers,
the CBN stated that deposits and
withdrawals under N 3 m would not
attract any charge , but that such
customers depositing or withdrawing
between N 3 m and N 10 m would be
charged two per cent and five per
cent, respectively.
Also for deposits and withdrawals
between N10 m and N 40 m , customers
will be charged three per cent and 7 . 5
per cent, respectively. Deposits or
withdrawals above N40 m by corporate
customers will attract a charge of five
per cent and 10 per cent , respectively .
According to the CBN, 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 .
The regulator noted that the committee
agreed 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 .
However , the CBN said 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 .
The CBN directed lenders to train their
employees to enlighten customers on
the new policy .
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