In a move said to in line with Nigeria’s cashless policy, the Central Bank of Nigeria (CBN) has said Nigerians will now be charged more for cash deposits and withdrawals.
According to a circular dated September 17, 2019, Mr. Sam Okojere, the CBN’s director of Payments System Management Department, instructed deposit money banks (DMBs) to implement the policy with immediate effect, starting from September 18.
The circular read: “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.”
Details of the policy which urges the DMBs to ensure strict compliance stipulates that 3% processing fee would be charged for withdrawals of cash above N500,000 for individual accounts, while 2% woukd be charged for deposits.
It also directed that corporate accounts would now attract a processing fee of 5% for withdrawals, and 3% for deposits of amounts above N3,000,000.
While the apex bank is currently implementing the cashless policy in six states and the Federal Capital Territory, it proposes that nationwide implementation will take off with effect from March 31, 2020.
The policy, which the CBN hopes will reduce the amount of physical cash (coins and notes) in circulation in the economy, is expected to encourage more electronic-based cash transactions.