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The Central Bank of Nigeria, CBN on Thursday announced the re-introduction of bank charges on cash deposits and withdrawals above N500,000 and N1m respectively.
The decision of the apex bank was made known in a circular signed by the Director, Banking and Payments System Department, Mr. Dipo Fatokun to all Deposit Money Banks, DMBs.
The apex bank explained that the decision to reintroduce the charges on cash deposits was part of the review of charges on deposits and withdrawals under the cashless policy.
TheNewsGuru.com reports that the charge which was once effective, was suspended in 2014 by the apex bank.
Fatokun explained that the decision was taken at the Bankers’ Committee meeting, which was held in Abuja two weeks ago. He said the committee also decided that the cashless policy should be extended to the remaining 30 states of the federation.
The apex bank however directed that 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.
According to the CBN, banks will from the said date (April 1) begin to charge individuals 1.5 per cent and two per cent for deposits and withdrawals between N500,000 and N1m. According to the circular, 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.
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. Also for 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. 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.
TheNewsGuru.com reports that the apex bank however directed lenders to train their employees to enlighten customers on the new policy.