Business
Outrage as CBN reintroduces charges on cash deposits, withdrawals
In what looks like an anti people’s policy, the Central Bank of Nigeria (CBN) on Thursday announced the reintroduction of bank charges on certain categories of cash deposits and withdrawals.
In a circular to all Deposit Money Banks, sighted by Ripples Nigeria, CBN said the decision to reintroduce the charges on cash deposits was part of the review of charges on deposits and withdrawals under the cashless policy.
It said the decision was taken at the Bankers’ Committee meeting, which held in Abuja, mid January 2017.
Signed by the Director, Banking and Payments System Department, CBN, Mr. Dipo Fatokun, the circular stated that the committee decided that the cashless policy should be extended to the remaining 30 states of the federation.
It also directed that with effect from April 1, 2017, banks in the states where the cashless policy was already operating, namely Lagos, Ogun, Anambra, Abia, Kano, Rivers and the Federal Capital Territory, would begin to impose charges on deposits and withdrawals above N500,000.
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Banks will from that date begin to charge individuals 1.5 per cent and two per cent for deposits and withdrawals between N500,000 and N1 million respectively.
According to the circular, individuals depositing or withdrawing between N1millio and N5 million will be charged two per cent and three per cent, respectively.
For amounts above N5million, banks will charge such individuals three per cent and 7.5 per cent for deposits and withdrawals, respectively.
Corporate customers’ deposits and withdrawals under N3 million is not to attract any charge, but such customers depositing or withdrawing between N3 million to N10 million will be charged two per cent and five per cent, respectively.
While deposits and withdrawals between N10 million and N40 million, will be charged three per cent and 7.5 per cent, respectively, deposits or withdrawals above N40 million 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.
The apex bank stated that the committee agreed that income generated from the processing fees above the allowable cash limits would be shared between it and the banks in the ratio of 40:60.
CBN said that existing exemptions to the policy such as revenue generating agencies of the federal, state and local governments (for lodgements) will be sustained. Also exempt from the processing fees are embassies, diplomatic missions, multilateral and aid agencies.
It could be recalled that the apex bank had in February 2014 directed all commercial banks not to charge customers on any deposits or withdraw all in the aim of encouraging banking culture growth in Nigeria, said to be less than 65 per cent compared with the record in South Africa and Ghana, with 80 per cent and 75, per cent respectively.
But an economist, Mr Femi Odulaike, said the policy rather than promote a cashless society, would hinder it.
“Can you imagine Nigerians, already cash strapped being compelled to pay for depositing or withdrawing their money? It sounds ridiculous,” he said.
Mrs. Joy Nwoye, Chief Executive Officer, Abress Fashion House, Ikeja, said low income earners would shun banks, based on the new directive.
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Barr. Macaulay G.
February 24, 2017 at 5:44 pm
I have already commented on this. I merely wish to add that this is a criminal conspiracy perpetrated by the CBN and deposits money banks to further impoverish the citizens of this country. It’s a new form of economic slavery. The CBN has even mapped out a sharing formula between it and banks with regard to an aspect of the policy! The CBN and it collaborators do not mean well for this country. If this is what a cashless economy means, then we don’t need it. With this policy in place, we would all be truly cashless.