The Central Bank of Nigeria (CBN) has announced that it would begin to charge bank customers making cash deposits and withdrawals from September 19, 2019.
In a circular made available to the public, the apex bank disclosed that the new policy of the transaction fees was designed to reduce cash in use.
The charges, according to the Central Bank, would attract 3% processing fees for withdrawals and 2% processing fees for lodgments of amounts above N500,000 for individual accounts.
CBN also made known that for corporate accounts, the Deposits Money Banks (DMBs) would charge 5% processing fees for withdrawals and 3% processing fee for lodgments of amounts above N3,000,000.
For now, these charges are only applicable to bank customers in Lagos, Ogun, Kano, Abia, Anambra, Rivers and the Federal Capital Territory (FCT). However, by March 31, 2020, the CBN’s implementation of the cash-less policy would take effect nationwide.
Other policies introduced: In a bid to further advance the cash-less economy and to enhance the collection of applicable government revenues, the CBN disclosed a review of the process for merchant settlement.
Effective from Thursday as well, the financial system regulator approved that banks should unbundle merchant settlement amounts and charge applicable taxes and duties on individual transactions as stipulated by regulations.
The CBN announced a downward review of the Merchant Service Charge (MSC) from 0.75% capped at N1,200 to 0.50% capped at N1,000.
The cash-less policy provides safe and efficient mechanisms for making and receiving payments with minimum risks to the CBN, payment service providers and end-users. It is also important to understand that going cashless not only eases one’s life but also helps authenticate and formalise the transactions that are done.
The authentication and formality in the financial system helps to curb corruption and the flow of black money which results in an increase of economic growth.