" ITREALMS: Cashless Policy: CBN commences nationwide charges on deposits, withdrawals above N500,000 - ITREALMS

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Wednesday, September 18, 2019

Cashless Policy: CBN commences nationwide charges on deposits, withdrawals above N500,000 - ITREALMS

The Central Bank of Nigeria (CBN) has commenced a nationwide implementation of the cashless policy with effect from March 2020, while implementation of charges on deposits and withdrawals takes immediate effect, from Wednesday, September 18, 2019, reports ITREALMS.

A circular to all Deposit Money Banks (DMBs) in the country, made available to 
ITREALMS, CBN said that implementation of the policy signals the imposition of charges on deposits in addition to already existing charges on withdrawals.

The circular, also noted that the charges, which take effect from Wednesday will attract three per cent processing fees for withdrawals and two per cent processing fees for lodgments of amounts above N500,000 for individual accounts.

On the corporate accounts, CBN in a circular signed by the Director, Payments System Management Department, Mr. Sam Okojere, said that DMBs would charge five per cent processing fees for withdrawals and three per cent processing fee for lodgments of amounts above N3,000,000.

The charge on deposits, CBN noted, would apply in Lagos, Ogun, Kano, Abia, Anambra, and Rivers States as well as the Federal Capital Territory (FCT) Abuja, while the full implementation of the cashless policy will effectively commence from March 31, 2020.

Further said this would promote the cashless policy and enhance the collection of applicable government revenues, just as it reviewed the process for merchant settlement.

“With effect from Tuesday, September 17, the CBN had given approval for banks to unbundle merchant settlement amounts and charge applicable taxes and duties on individual transactions as stipulated by regulations.

Okojere, insisted that a downward review of the Merchant Service Charge has been approved, from 0.75 per cent capped at N1, 200 to 0.50 per cent capped at N1, 000.

Chuks Egbuna/Editor

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