cbn declears bank charges on large withdrawals

Money Pile 00 dollar bills

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

shall remain.

“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

charge.

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

withdrawal charges.

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