The Central Bank of Nigeria (CBN) on Thursday
announced the re-introduction 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 N500,000.
Banks will from that date 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. The CBN directed lenders to train their
employees to enlighten customers on the new policy.
