Banks begin deductions of new withdrawal, deposit charges

Commercial Banks in the country have stated the implementation of charges on withdrawals and deposit in line with the Central Bank of Nigeria’s cashless policy drive, National Daily has gathered.

Although slated for April 1, which falls on the weekend, the full take off of the policy started yesterday, April 3 as financial institutions, markets and all corporate activities resume weekly operations.

According to the schedule of the cash-less policy drive, Lagos, Ogun, Abia, Kano, Anambra, Rivers states and the Federal Capital Territory has taken off. In these states, individuals can only withdraw or deposit money to the tune of N500,000 in a single bank account per day without charges.

This means that any withdrawal above N500,000 to N1 million will attract two per cent charge; between N1 million and N5 million, three per cent; and above N5 million will get 7.5 per cent charge.

On the other, deposits above N500,000 will attract 1.5 per cent charge; between N1 million and N5 million, two per cent; and above N5 million, three per cent.For corporate organisations, only withdrawal and deposit of N3 million will be without charges.

Deposits between N3 million and N10 million will get two per cent charge; above N10 million to N40 million, three per cent; and more than N40 million will be charged five per cent. On the other hand, withdrawals between N3 million and N10 million will be charged five per cent; above N10 million to N40 million, 7.5 per cent; and more than N40 million will be charged 10 per cent.

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Dispelling the fears of derailing financial inclusion projects, Executive Director, Finance, BGL Captal Limited, Femi Ademola, said the rural mass target in financial inclusion has no N500,000 daily transactions to make.

According to him, those with such amount are already in the financial system and have access to multiple channels of payment, which are free and without limit.

“The policy is just about letting people do transactions without physical cash. That is where the world is going. You have cheque, Point of Sale, transfers through ATM, mobile phone, Internet banking, even the latest USSD code. These are without charges. There is no discouragement and there is nothing to fear,” he said.