📰Cashless Policy: CBN suspends charges on large withdrawals

The Central Bank of Nigeria (CBN) has suspended indefinitely the withdrawal and deposit processing fees introduced recently under its cashless policy.

A circular issued on Friday and signed by the Director, Banking and Payment Systems department of the CBN, Dipo Fatokun, directed all bank’s that had started implementing the processing fees which came into effect on April 1 to make refund to customers.

The circular said the apex bank would now revert to the status quo ante, that is the existing policy prior to the announcement of the new policy as earlier implemented in Lagos, Ogun, Kano, Anambra, Rivers and the FCT.

The old charges to be reverted to are – individual withdrawal/lodgment limits of N500,000 which will now attract processing fee of three per cent and zero for lodgment.

Also corporate withdrawals/ lodgment limits of N3,000,000 will now attract five per cent processing fee for withdrawals and zero fees for lodgments.

The CBN had issued two circulars in February and March this year directing banks to implement a new regime of processing fees on withdrawals and lodgments by depositors.

The old circular titled: “Circular on nationwide implementation of the cashless policy,” read:

“Charges for cash deposit by individuals are 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 per cent charge; above N5 million, three per cent charge.”

“Charges for cash withdrawal by individuals are as follows: Less than N500,000, zero charge; From N500,000 to N1 million, two per cent; from N1 million to N5 million, three per cent charge; above N5 million, 7.5 per cent charge.”

“Charges for corporate cash deposit are as follow: Less than N3 million, zero charge; from N3 million to N10 million, two per cent; from N10 million to N40 million, three per cent; above N40 million, five per cent.”

“Charges for corporate cash withdrawal are 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 per cent.”

“The new charges would take effect from April 1, 2017, in the existing cashless states (Lagos, Ogun, Kano, Abia, Anambra, Rivers and the FCT).”