Stakeholders pressurize CBN to suspend new bank charges

Facts have started emerging on the reason why the Central Bank of Nigeria may have suspended the new bank charges for cash deposit and withdrawal in its cashless policy drive.

Although there is no official position yet, but National Daily gathered that the decision was not unconnected with certain powerful stakeholders who had been on the neck of the apex bank to discountenance the idea.

The groups, National Daily gathered insisted that the CBN should do more sensitisation

Specifically, the insider source who asked not to be named because of the sensitive nature of the issue revealed that “The regulator was almost being blackmailed by some interest groups, most of whom felt they were not carried along in the scheme of things and in order not to look insensitive, the next best thing to do after taken all the complaints on board was to simply have a rethink while allowing for more stakeholder engagement.”

Expatiating, another source said: “The complaints from nearly all the stakeholder groups was that we needed to do more sensitisation and after considering the strategic environmental assessment of the policy, we thought it was the best thing we could do under the circumstance.”

The sources reiterated that it is to correct the negative perception of the bank’s operations that largely informed the decision to return to status quo.

It may be recalled that the apex bank had issued a directive to banks last February to begin the implementation of reintroduction of new bank charges for cash deposit and withdrawals effective from April 1, 2017.

In the suspended charges, cash deposit by individuals of less than N500,000, gets zero charge; from N500,000 to N1 million, 1.5 per cent; from N1 million to N5 million, two per cent charge; above N5million, 3 per cent charge.

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For withdrawals, less than N500, 000, zero charge; From N500, 000 to N1 million, two per cent; from N1 million to N5 million, 3 per cent charge; above N5 million, 7.5 per cent charge.

Meanwhile, President, National Association of Nigerian Traders, Barrister Ken Ukaoha lauded the CBN for the decision, saying that nothing has changed since the introduction, except for banks making more profits.

Nigerian banks, he said, have with CBN’s tacit approval, been imposing on their customers similar COTs for withdrawals from savings accounts, “cash handling charges” for withdrawals of N1m and above, and other inexplicable and unjust charges.

Also, former Registrar, Chartered Institute of bankers of Nigeria, CIBN, Mrs. Ogubunka said charging customers for deposits or withdrawals would actually encourage more customers not to embrace the banking culture.