CBN Introduces New Policy, Banks To Charge Nigerians For Deposits, Withdrawals

The Central Bank of Nigeria (CBN) has notified all commercial banks the introduction and the implementation of a new phase of its cashless policy which will see Nigerians charged for certain percentage on deposits and withdrawals. recently sighted the new circular on the changes, dated September 17, 2019. The CBN’s Director of Payments System Management Department, Sam Okojere, instructed deposit money banks to implement the policy starting from September 18.

“Charges on deposits shall apply in Lagos, Ogun, Kano, Abia, Anambra, Rivers states and the FCT, in addition to already existing charges on withdrawals, effective September 18, 2019,” the statement read.

According to the policy, a 3% processing fee will be charged for withdrawals of amounts above N500,000 for individual accounts, while 2% will be charged for deposits.

For corporate accounts, a processing fee of 5% will be charged for withdrawals, and 3% for deposits of amounts above N3 million.

“Please ensure strict compliance,” the CBN statement added.

CBN circular on new policy

Currently, the apex bank’s policy will be operational in six states of Lagos, Ogun, Kano, Abia, Anambra, Rivers, and the Federal Capital Territory, but nationwide implementation will take effect from March 31, 2020.

The CBN hopes the policy will reduce the amount of physical cash (coins and notes) circulating in the economy, and encourage more electronic-based transactions.

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