Cashless Policy: CBN suspends bank charges for deposits and withdrawals
Nairametrics| The Central Bank of Nigeria released a circular BPS/DIR/GEN/CIR/04/004 suspending its most recent withdrawal and deposit processing fee policy that came into effect 1st April 2017 in Lagos, Ogun, Kano, Abia, Anambra, Rivers, and FCT. It requires that the banks revert back to the old charges of 3% processing fee for withdrawals and no processing charges for lodgements.
Download the circular here.
In two previous circulars, BPS/DIR/GEN/CIR/04/001 issued on 21st February 2017, and BPS/DIR/GEN/CIR/04/002 issued on 16th March 2017 the CBN had re-introduced the charges for cash deposits.
Charges for cash deposit by individuals were as follows: Less than N500,000, zero charge; from N500,000 to N1 million, 1.5 per cent; from N1 million to N5 million, two percent charge; above N5 million, 3 per cent charge.
Charges for cash withdrawal by individuals were as follows: Less than N500,000, zero charge; From N500,000 to N1 million, two percent; from N1 million to N5 million, 3 percent charge; above N5 million, 7.5 per cent charge.
Charges for corporate cash deposit were as follow: Less than N3 million, zero charge; from N3 million to N10 million, two percent; from N10 million to N40 million, three percent; above N40 million, five per cent.
Charges for corporate cash withdrawal were as follows: Less than N3 million, zero charge; from N3 million to N10 million, five per cent; from N10 million to N40 million, 7.5 per cent; above N40 million, 10 percent.
The policy took effect on 1st April 2017 in Lagos, Ogun, Kano, Abia, Anambra, Rivers, and FCT. Subsequently, it was to be implemented in other states in the Federation over three phases. The first was to be, May 1, 2017, in the following states: Bauchi, Bayelsa, Delta, Enugu, Gombe, Imo, Kaduna, Ondo, Osun, and Plateau. The second, August 1, 2017, in the following states: Edo, Katsina, Jigawa, Niger, Oyo, Adamawa, Akwa Ibom, Ebonyi, Taraba, and Nasarawa. And the third, October 1, 2017, in the following states: Borno, Benue, Ekiti, Cross River, Kebbi, Kogi, Kwara, Yobe, Sokoto, and Zamfara.
The CBN circular released suspends the implementation of the policy in Lagos, but it remains unclear if this means that it will not be implemented across the other states. The banks are to revert back to the policy that was in effect prior to 1st April 2017. That policy requires a 3% processing fee for withdrawals above the N500, 000 limit for individuals, and no processing fee lodgements. For corporate entities, there is a 3% processing fee for withdrawals above N3, 000, 000, and no charge for lodgements.