Cashless Policy: CBN Begins Charges On Deposits & Withdrawals Above N500,000

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The Central Bank of Nigeria (CBN) on Tuesday said the nationwide implementation of the cashless policy will begin next year (March 2020 to be precise). The apex bank said this in a circular to all Deposit Money Banks (DMBs) in the country.

It said the implementation of the policy would signal the imposition of charges on deposits in addition to already existing charges on withdrawals.

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According to the circular, the charges, which take effect from Wednesday 18th September 2019 will attract 3% processing fees for withdrawals and 2% processing fees for lodgments of amounts above N500,000 for individual accounts.

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For corporate accounts, the apex bank in the circular said that DMBs would charge 5% processing fees for withdrawals and 3% processing fee for lodgments of amounts above N3,000,000.

The CBN said the charge on deposits would apply in Lagos, Ogun, Kano, Abia, Anambra, and Rivers States as well as the Federal Capital Territory.

It added that the implementation of the cashless policy would take effect from March 31st, 2020.

To further promote the cashless policy and enhance the collection of applicable government revenues, the CBN also announced a review of the process for merchant settlement.

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It also added that with effect from Tuesday, September 17, the CBN had given approval for banks to unbundle merchant settlement amounts and charge applicable taxes and duties on individual transactions as stipulated by regulations.

A statement signed by the Director, Payments System Management Department, CBN, Sam Okojere, said a downward review of the Merchant Service Charge had been approved.

It said henceforth, the charges had been reduced from 0.75% capped at N1,200 to 0.50% capped at N1,000.

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