Banks To Begin Charges On Transactions Above N500,000 

The Central Bank of Nigeria has said it would begin the imposition of charges on deposits and withdrawals on N500,000 and above with the aim of embarking on the nationwide implementation of the cashless policy.

The apex bank disclosed this in a circular to all Deposit Money Banks in the country, noting that the cashless policy will begin in March 2020. It said that implementation of the policy would signal the imposition of charges on deposits in addition to already existing charges on withdrawals.

According to the circular, the charges, which will take immediate effect from today, 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.

For corporate accounts, the apex bank in the circular 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 statement, however, disclosed that the charge on deposits would apply in Lagos, Ogun, Kano, Abia, Anambra, and Rivers States as well as the Federal Capital Territory.

It added that the implementation of the cashless policy would take effect from March 31, 2020. To further promote the cashless policy and enhance the collection of applicable government revenues, the CBN also announced a review of the process for merchant settlement.

It added that 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.

A statement signed by the Director, Payments System Management Department, CBN, Sam Okojere, said a downward review of the Merchant Service Charge had been approved. It said henceforth, the charges had been reduced from 0.75 per cent capped at N1,200 to 0.50 per cent capped at N1,000.