CBN Approves Charges On Withdrawals And Deposits; Unbundles Charges on Electronic Merchants

CBN Approves Charges On Withdrawals And Deposits; Unbundles Charges on Electronic Merchants

Effective today, bank customers will pay a huge fine for cash deposit or withdrawal above N500k for individuals or N3m for corporates. The CBN, in a circular to all deposit money bank (DMBs), announced the commencement of charges on deposits in addition to already existing charges on withdrawals.

According to the circular, the charges, which take effect from Wednesday, September 18, 2019, will attract 3% processing fees for withdrawals and 2% processing fees for lodgment of amounts above N500,000 for individual accounts.

Similarly, corporate accounts will attract 5% processing fees for withdrawals and 3% processing fee for lodgment  of amounts above N3,000,000.

The statement, however, disclosed that the charge on deposits shall apply in Lagos, Ogun, Kano, Abia, Anambra, and Rivers States as well as the Federal Capital Territory. It added that the nationwide implementation of the cash-less policy would take effect from March 31, 2020.

Account Type Withdrawal/ Lodgement limits Processing fees for Withdrawals Processing fees for Lodgements
Individual Above 500,000 3% 2%
Corporate Above 3,000,000 5% 3%

Also, to further promote a cash-less economy and enhance the collection of applicable government revenues, the Central Bank of Nigeria (CBN) has announced a review of the process for merchant settlement.

With effect from September 17, 2019, the CBN has approved for banks to unbundle merchant settlement amounts and charge applicable taxes and duties on individual transactions as stipulated by regulations.

A statement signed by the Director, Payments System Management Department at the Bank, Sam Okojere, also announced a downward review of the Merchant Service Charge (MSC) from 0.75% capped at N1,200 to 0.50% capped at N1,000.

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