CBN, fintechs

In a reaction to the policy of the Central Bank of Nigeria (CBN) which allows bank customers to be charged for cash deposits, United Bank for Africa has issued a response, saying that the estimated charges would not apply on any of its digital channels. 

This was reportedly disclosed in an email message issued to its customers’ emails where the bank maintained that digital channels like Mobile Banking, Internet Banking, Leo, *919# and the debit cards will be exempted from any deposit charges. 

 “As part of the effort to drive the cashless policy and enhance the efficiency of the Nigerian payments system, the Central Bank of Nigeria has re-introduced charges on cash deposits above N500,000 for individuals and N3,000,000 for corporates. This policy will commence with immediate effect and is in addition to the already existing charges on withdrawals. 

The charges will apply when you make cash withdrawals or deposits above N500,000 or N3,000,000 at any UBA branch in Lagos, Ogun, Kano, Abia, Anambra, Rivers States, and the FCT. A nationwide implementation will take effect from March 31, 2020. Please note that transactions through our digital channels (Mobile Banking, Internet Banking, Leo, *919#) and our debit cards, will not be subject to these charges,” the bank said. 

[READ MORE: UBA Delivers 21% Growth in Profit, 21.7% Return on Average Equity, Declares N0.20 Interim Dividend]

What you should know: Recall that the Central Bank of Nigeria (CBN) announced that it would begin to charge bank customers making cash deposits and withdrawals from September 19, 2019. In a circular made available to the public, the apex bank disclosed that the new policy of the transaction fees was designed to reduce cash in use. 

The charges, according to the Central Bank, would attract 3% processing fees for withdrawals and 2% processing fees for lodgments of amounts above N500,000 for individual accounts. 

[ALSO READ: UBA declares interim dividend for Half-Year 2019

Newer Developments: Lawmakers also kicked against the policy, describing it as an overbearing burden that could lead to the closing down of majority of micro, mini, small and medium businesses in the country. 

Deal book 300 x 250

One of the lawmakers, who serves as Chairman of the House Committee on Media and Public Affairs, Benjamin Kalu, added that the policy was also aimed at enriching the deposit money banks owned by a privileged few, without any known financial contribution to the consolidated revenue fund of the federation. 

 

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