CBN begins imposition of charges on deposits, withdrawals above N500,000

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The Central Bank of Nigeria has disclosed it has begun imposing charges on deposits and withdrawals above N500,000 for individuals and N3million for corporate bodies.

The charges, according to the bank, will take effect from Wednesday (today) and will attract three percent processing fees for withdrawals and two percent processing fees for lodgments of amounts above N500, 000 for individual accounts.

For corporate accounts, the bank said that commercial banks would charge five percent processing fees for withdrawals and three percent processing fee for lodgments of amounts above N3, 000, 000.

This was contained in a circular to all Deposit Money Banks in the country and signed by the Director, Payments System Management Department, CBN, Sam Okojere, recently.

The apex bank noted that implementation of the policy would mean imposition of charges on deposits in addition to already existing charges on withdrawals.

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.

The bank also disclosed that the nationwide implementation of the cashless policy will begin on 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.

The bank said a downward review of the Merchant Service Charge had been approved.

According to it, the charges had been reduced from 0.75 per cent capped at N1, 200 to 0.50 per cent capped at N1, 000.

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