Business - February 24, 2017

Bankers’ Committee to re-introduce charges on cash deposits April 1

Espinews February 24, 2017

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The Bankers’ Committee has fixed April 1, 2017 to re-introduce charges on cash deposits by bank customers.

The Director, Banking and Payment System, CBN, Dipo Fatokun, who announced this in a circular posted on the CBN website on Thursday said that the Bankers’ Committee at its 493rd meeting held on February 8, 2017, reviewed the cashless policy charges on withdrawal and deposit and decided that the policy be extended to the 30 remaining states of the federation.

According to the circular, charges on deposits and withdrawals will affect cash from N500, 000.

It stated that for cash between N500,000 and N1 million, deposit would be 1.5 per cent charge while for withdrawals will be two per cent of the amount.

Similarly, for cash between N1 million and N5 million, while deposit attracts two per cent of the amount, bank customers making withdrawals within the range would have to pay three per cent charge. For cash above N5 million, deposit attracts three per cent charge while withdrawals is 7.5 per cent.

On the other hand, for corporates with cash less than N3 million, for deposit and withdrawals, there would be no charge.

But firms with cash between N3 million and N10 million, depositing such would attract two per cent charge, while withdrawals would attract five cent of the amount.

Also, for cash between N10 million and N40 withdrawn from a corporate account holder, three per cent would be charged for deposit and 7.5 per cent for withdrawals. For cash above N40 million, deposit is five per cent and withdrawals is 10 per cent.

The statement noted that the new charges will be implemented in phases. The existing cash-less states of Lagos, Ogun, Kano, Abia, Anambra, Rivers and the FCT will be implemented on April 1, 2017 then other regions will follow.

It stated that the policy shall be implemented with the charges taking effect on May 1, 2017, in Bauchi, Bayelsa, Delta, Enugu, Gombe, Imo, Kaduna, Ondo, Osun and Plateau States.

In Edo, Katsina, Jigawa, Niger, Oyo, Adamawa, Akwa Ibom, Ebonyi, Taraba and Nasarawa State the policy would be implemented with the charges taking effect on August 1, 2017.

“The policy shall be implemented with the charges taking effect on October 1, 2017, in the following states: Borno, Benue, Ekiti, Cross River, Kebbi, Kogi, Kwara, Yobe, Sokoto and Zamfara.

According to the CBN, the income generated from the processing fees charged above the allowable cash transaction limits shall be shared between CBN and the banks in the ratio of 40:60.

“Existing exemptions remain sustained for revenue generating accounts of the federal, state and local governments (lodgements only). Embassies, diplomatic missions, multilateral and aid donors in Nigeria are also exempted from all processing fees relating to the cashless policy implementation,” the CBN explained.