Cashless policy: CBN goes tough on enforcement, orders banks to commence charges for cash deposits, withdrawals from today

All Deposit Money Banks (DMBs) operating in the country have been directed to commence charges on deposits from their individual and corporate customers from Wednesday, September 18,2019.

A circular released on Tuesday and signed by the Director in charge of Payments System Management Department, Mr Sam Okojere, stated that this would be applied to customers based in Lagos, Ogun, Kano, Abia, Anambra, Rivers State and the Federal Capital Territory (FCT) Abuja.

Business Post gathered that this development is part of efforts of the central bank to deepen its cashless policy in the country despite being resisted in some quarters because of some glitches.

“Further to our circular ref BPS/DIR/GEN/CIR/04004, we write to inform all Deposit Money Banks that the Central Bank of Nigeria (CBN) has approved that:

“Charges on deposits shall apply in Lagos, Ogun, Kano, Abia, Anambra, Rivers State and FCT, in addition to already existing charges on withdrawals, effective September 18, 2019,” the apex bank declared.

According to the circular, the banks were directed to charge 2 percent processing fees for lodgments (deposits) from individual customers making payments above N500,000 and 3 percent for lodgments above N3 million from corporate customers.

For individual customers, 3 percent processing fees would be charge for withdrawals, while 5 percent would be charged for withdrawals above N3 million from corporate account holders.

The CBN further stressed in the circular that, “Nationwide implementation of the cashless policy will take effect from March 31, 2020.”

“Please ensure strict compliance,” it warned the banks.