CBN Clarifies Cashless Policy Transaction Charges

The Central Bank of Nigeria (CBN) says the transaction charges on deposit and withdrawal in furtherance of the implementation of its cashless policy is on the amount in excess of the set limits.

The Director, Corporate Communication Department, Mr. Isaac Okorafor, made the clarification in an interview with the News Agency of Nigeria (NAN) in Abuja on Monday.

NAN reports that CBN on Sept 17 issued a circular to deposit banks to commence the implementation of the cashless policy in six pilot states across the country.

The CBN explained that transactions would attract three percent processing fees for withdrawal and two percent processing fees for lodgement of amounts above N500,000 for individual accounts.

Similarly, corporate accounts would attract five percent processing fees for withdrawal and three percent processing fees for lodgement of amounts above N3 million

The apex bank directed that implementation should commence from Sept. 18 in Lagos, Ogun, Kano, Abia, Anambra, and Rivers States, as well as the Federal Capital Territory (FCT).

It, however, stated that the nationwide implementation of the cashless policy would take effect from March 31, 2020.

Okorafor explained that contrary to the misconception on the implementation of the policy, the charges would only be on the excess of N500,000 deposited or withdrawn for individuals and N3 million for a corporate body

According to him, if an individual deposited N510,000 the two percent charge would be on the N10,000 excess which is N200 only.

He said the same applied to a withdrawal of same amount, adding that the three percent charge would be on excess of the set limits.

He said that the same thing also applies to the corporate body also which five percent on withdrawal and three percent on lodgement of amounts above N3 million.

Many Nigerians welcome the development, noting that it would enhance transparency in financial dealings and reduce crimes such as ransom payment and extortion among others.

Others, however, described it as an additional burden on banks’ customers who were already laden with other charges by the banks.

CBN Governor Godwin Emefiele had also said, after the Monetary Policy Committee meeting on Friday in Abuja, that the policy was inaugurated in the country in 2012 and implementation began in 2014.

“The policy says if you deposit money in the bank above a particular threshold which for an individual is N500,000 and N3 million for corporate bodies, then you will be charged, same for withdrawal.

He stated that the policy was not designed to de-franchise hardworking Nigerians as perceived by some categories of people.

According to him, data conducted revealed that close to 95 percent of cash deposited and withdrawn fall below this threshold.

Emefiele said Nigerians had already embraced electronic channels and online transaction in market places.

He added that Micro, Small and Medium Enterprises now had various options and channels available to collect a legitimate payment for goods and services, like POS, banks transfer using ATM, USD code among others.

He said that the cashless policy increases transparency in financial dealings and reduce crimes such as ransom payment and extortion among others.

The governor said the bank had the mandate under the CBN Act 2007 as amended to promote a sound and stable financial system through a credible efficient payment system. (NAN)