CBN Reintroduces Charges on Cash Deposit

CBN Reintroduces Charges on Cash Deposit

The Central Bank of Nigeria on Thursday announced the reintroduction of bank charges on cash deposits and withdrawals above N500,000.00, a year after it was discontinued, the Punch is reporting.

In a circular to all Deposit Money Banks posted on its website, the CBN said it decided to reintroduce the charges as part of its cashless policy.

According to the circular, from April 1, 2017, banks in the states where the cashless policy already operates – 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 begin to charge 1.5 percent and two percent for cash deposits and withdrawals between N500,000 and N1 million. For amounts above N5m, banks will charge three per cent and 7.5 per cent for deposits and withdrawals, respectively.

However, corporate customers will not be charged for deposits and withdrawals under N3m. They will, however, be charged two percent and five percent for depositing or withdrawing between N3m and N10m 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.

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 remain. Also exempt from the processing fees are embassies, diplomatic missions, multilateral and aid agencies.

The circular, signed by the Director, Banking and Payments System Department, CBN, Mr. Dipo Fatokun, also stated that the apex bank has decided to extend the cashless policy to the remaining 30 states of the federation.