CBN reverses self on cashless rules

• Asks banks to make refunds immediately

Less than one month after the take-off of the nationwide cashless initiative, the Central Bank of Nigeria (CBN), has directed Deposit Money Banks to suspend charges on over-the-counter and Automated Teller Machine withdrawals worth more than N500,000 or deposit of same amount.

In a statement by apex bank’s Director, Banking and Payments System Department, Dipo Fatokun, all the charges introduced in February, which took off since April 1, 2017, have been suspended.

“For further clarification, the existing policy prior to the announcement of the new policy as earlier implemented in Lagos, Ogun, Kano, Abia, Anambra, Rivers states and the FCT shall remain.

“For the avoidance of doubt, the old charges to be reverted to are as follows: Individual charges on withdrawals or lodgement limit are now three per cent. Corporate accounts will be charged five per cent for withdrawal or lodgement of over N3 million cash.

“Henceforth, nothing will be charged as processing fees for lodgements,” he said, and directed banks to make all necessary refunds to customers with immediate effect.
The CBN in February announced plans to extend the Cashless Policy to all the remaining states of the Federation by Oct. 1, 2017, to enhance the efficiency of payment systems.

This policy, which has attracted mixed feelings, whether well informed or not, was scripted in phases, with market the first- Lagos, Ogun, Kano, Abia, Anambra, Rivers states taken off since April 1, 2017.

In these states, individuals can only withdraw or deposit money to the tune of N500,000 in a single bank account per day without charges.This means that any withdrawal above N500,000 to N1 million will attract two per cent charge; between N1 million and N5 million, three per cent; and above N5 million will get 7.5 per cent charge.

On the other, deposits above N500,000 will attract 1.5 per cent charge; between N1 million and N5 million, two per cent; and above N5 million, three per cent. For corporate organisations, only withdrawal and deposit of N3 million will be without charges.

Deposits between N3 million and N10 million will get two per cent charge; above N10 million to N40 million, three per cent; and more than N40 million will be charged five per cent.

On the other hand, withdrawals between N3 million and N10 million will be charged five per cent; above N10 million to N40 million, 7.5 per cent; and more than N40 million will be charged 10 per cent.