Bank customers to now pay charges on cash deposits and withdrawals

The newly introduced charges on bank deposit by the Central Bank of Nigeria (CBN) is expected to kick off today.

According to the new policy, bank customers making cash deposits or withdrawals will pay charges in line with the Central Bank of Nigeria’s new policy.

It was gathered that the objective of the “transaction fees” is to give vent to the Central Bank’s policy designed to reduce cash in use.

CBN Payments System Management Department Director Sam Okojere on Tuesday announced the take-off of the charges

It was also learnt that the transactions will attract three per cent processing fees for withdrawals and two per cent processing fees for lodgments above N500,000 for individual accounts.

Corporate accounts will attract five per cent processing fees for withdrawals and three per cent processing fee for lodgments above N3 million.

However, the charges will only apply in Lagos, Ogun, Kano, Abia, Anambra, Rivers and the Federal Capital Territory (FCT).

Okojere said the implementation of the cash-less policy nationwide would take effect from March 31, 2020.

Also to further promote the cash-less economy and to enhance the collection of applicable government revenues, the CBN announced a review of the process for merchant settlement.

Read also: Bill Gates decries Nigeria’s low domestic revenue

The regulator has, effective today, approved for banks to unbundle merchant settlement amounts and charge applicable taxes and duties on individual transactions as stipulated by regulations.

Okojere announced a downward review of the Merchant Service Charge (MSC) from 0.75 per cent capped at N1,200 to 0.50 per cent capped at N1,000.

The cash-less policy provides safe and efficient mechanisms for making and receiving payments with minimum risks to the CBN, payment service providers and end-users.

The cash-less payment is catching on to the extent that even the lowly members of the society now do transactions online.

Without this policy, Nigeria cannot be integrated into the world’s financial system.

Pushing for the full use of the online payment system, the apex bank said for Nigeria to actively play at the world stage, “our payment system must be successfully benchmarked against the global best practices, as in most developed nations of the world.”

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