Cashless policy: Banks customers begin payment for huge deposits, withdrawals

Bank account owners in Nigeria are now charged for huge deposits and withdrawals, the Central Bank of Nigeria has revealed.

This policy, which is aimed at promoting the cashless regime, took effect from September 18, 2019.

Similarly, the apex bank has also announced a downward review of the Merchant Service Charge from 0.75 per cent capped at N1,200 to 0.50 per cent capped at N1,000.

However, the implementation of the new policy signals the imposition of charges on deposits in addition to already existing charges on withdrawals.

According to the circular signed by Director, Payments System Management Department of CBN, Sam Okojere, the charges would attract three per cent processing fees for withdrawals and two per cent processing fees for lodgments of amounts above N500,000 for individual accounts.

For corporate accounts, the apex bank in the circular said that Deposit Money Banks would charge five per cent processing fee for withdrawals and three per cent for lodgments of amounts above N3m.

Although, it stated that the charge on deposits would apply in Lagos, Ogun, Kano, Abia, Anambra, and Rivers states as well as the Federal Capital Territory.

Also to enhance the collection of applicable government revenues, the CBN also announced a review of the process for merchant settlement by bank customers.

With the review, the CBN said it gave approval for banks to unbundle merchant settlement amounts and charge applicable taxes and duties on individual transactions as stipulated by the regulations.

The nationwide implementation of the cashless policy will take effect from March 31, 2020, it said.

In June, the CBN had announced the take-off of the third and final phase of the cashless policy in 30 states.

The apex bank said that the decision followed the successful completion of phases one and two in six pilot states and Abuja.

Phase One of the scheme took off in Lagos on January 1, 2012, while Abia, Anambra, Kano, Ogun and Rivers states, as well as Abuja, were involved in Phase Two, which commenced on October 1, 2013.