Abuja – The Central Bank of Nigeria (CBN) has directed Deposit
Money Banks to suspend charges on over-the-counter or ATM
withdrawals of above N500,000 or deposit of same amount.
The apex bank’s Director, Banking and Payments System
Department, Mr Dipo Fatokun, in a circular dated April 20, 2017,
said all the charges introduced in February, and meant to take
effect from April 1, 2017, have been dropped.
“For further clarification, the existing policy prior to the
announcement of the new policy as earlier implemented in
Lagos, Ogun, Kano, Abia, Anambra, Rivers states and the FCT
“For the avoidance of doubt, the old charges to be reverted to
are as follows: Individual charges on withdrawals or lodgment
limit is now three per cent.
“Corporate accounts will be charged five per cent for withdrawal
or lodgment of over N3 million cash.
“Henceforth, nothing will be charged as processing fees for
lodgments,” he said.
Fatokun directed banks to make all necessary refunds to
customers with immediate effect.
The CBN in February announced its plan to extend the Cashless
Policy to all the remaining states of the Federation by Oct. 1,
2017, to enhance the efficiency of payment systems.
This policy, which received a lot of backlash from market
analysts, was to commence in phases within the country with
effect from April 1, 2017.
The policy introduced charges on the cumulative cash
withdrawals or deposits per customer per day, irrespective of
the channels used either over-the-counter or ATM.
The charges for individuals was two per cent for withdrawals
above N500,000 to N5 million, 1.5 per cent on deposits for
N500,000 to N1 million, and three per cent on deposits above
N1 million to N5 million.
Also, individual withdrawals above N5 million was to incur a 7.5
per cent charge.
Similarly, corporate accounts were also to incur a charge of two
per cent on withdrawals ranging from N3 million to N10 million,
while withdrawals of that amount would be at a five per cent
Over-the-counter deposit of above N10 million to N40 million
was to attract a three per cent charge and 7.5 per cent on
withdrawals, while above N40 million attracts five per cent on
deposits and 10 per cent on withdrawals.
However, the policy exempted Revenue-Generating Accounts of
the Federal, State and Local Governments, Ministries,
Departments and Agencies of Government from cash deposit
charge. Also, accounts of Embassies, Diplomatic Missions, Multilateral,
Aid Donor Agencies in Nigeria, Microfinance banks and Primary
Mortgage Institutions were exempted from the cash deposit and