CBN reintroduces charges on cash deposits, withdrawals
Published February 24, 2017
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by Taboola
Akinpelu Dada
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 N 1 m .
According to the circular , individuals depositing or withdrawing between N 1 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 N 10 m and N 40 m , customers will be charged three per cent and 7 . 5 per cent, respectively . Deposits or withdrawals above N 40 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 .

http://punchng.com/cbn-reintroduces-charges-cash-deposits-withdrawals/

CBN why now?

This is not a good time for this ...The CBN must do everything in its place to keep that banks active in the recession ..Alienating the cash based trading sector in these times is a no no ..not good

This CBN is senseless and confused.

There may not be need for banks anymore shikena

unclezuma:
This country is just a shop at Alaba International.

This Country fabricates electronic ideas with no caution.

This will do the opposite, it will encourage people to hoard cash at home.

Next time OP, be consistent in your writing, you either stick to figures only, words only or words with respective figures in brackets.

- 7%
- seven percent
- seven percent (7%)

Your inconsistency makes the write up hard to follow.

Why enough northern states no dey dat list?So na southern states dem wan use shine now abi?If na to share money now or federal appointment dem states go top dat list..Confused country.

What is d book about?

unclezuma:


Have you read George Orwell's 1984?

Ademat7:
What is d book about?

It was written in the 40's and talks about a future when the government is ruled by unseen leader called Big Brother and lies like there's no tomorrow.

rose54321:
This will do the opposite, it will encourage people to hoard cash at home.

Next time OP, be consistent in your writing, you either stick to figures only, words only or words with respective figures in brackets.

- 7%
- seven percent
- seven percent (7%)

Your inconsistency makes the write up hard to follow.

sharap！ go and tell PUNCH NEWSPAPER THAT, i tell u say na me write am.

iluvdonjazzy:
sharap！ go and tell PUNCH NEWSPAPER THAT, i tell u say na me write am.

That's an absurd argument, you didn't write it yes, but you deemed it accurate to post here.

Vet your content in terms of quality and accuracy before rushing to create a topic on Nairaland.

rose54321:


That's an absurd argument, you didn't write it yes, but you seemed it accurate to post here.

Vet your content in terms of quality and accuracy before rushing to create a topic on Nairaland.

oya com and slap me

unclezuma:


It was written in the 40's and talks about a future when the government is ruled by unseen filer called Big Brother and lies like there's no tomorrow.

Will check it out on Google

If you read the full policy the banks and CBN will share the fees 60:40.

But why at this moment in time??

Why at this particular moment??

Why now?

CBN and the banks should be looking at how to give loans with small interests to small and medium sized enterprises and manufacturers to grow the economy.

Not this sh¡t.

Weda na to just dig ground dey kip my money sef

Hmmm, Main while, so person no fit save and withdraw him money in peace again? So if I save and withdraw ANDREW YAKUBU, Den bank go come charge me 5%?? 224million naira just like

God punish any idiot wey get hand for dis policy

Trial and error country

Even CBN want to scam us. Trust none!

3 percent of 500k is something

No deal!

APC HAS FINISH US

Good policy, transactions should be cashless in this days and time.

The CBN is even lenient to take it upto 500k with charges, left to me is outright ban, this has already happened in India a country of over 1.2billion people

Use your internet banking, mobile banking etc for transaction even if it is over 1 billion no one will charge you kobo.

Only criminals that want money trail to end that demand cash paymennt, eg drug deal, kidnapping, bribes etc

Personally I only use cash when I go to local market, everything is POS, Internet or mobile banking, with this you can easily audit my personal accounts

The CBN governor is a big MOLE in this government.

All his policies are always disruptive.

This is a very clueless policy indeed. We are trying to achieve a cashless policy, yet you are charged for making deposits which actually helps reduce the cash in circulation. If i will be charged for taking my Money to the bank, why take it to the bank?