CBN Gives Clarification On Cashless Policy

The Central Bank of Nigeria (CBN) has given clarification on the implementation of the cashless policy which involves charges on deposits in addition to already existing charges on withdrawals.

The financial institution in a circular to all Deposit Money Banks (DMBs)  on Tuesday had directed that deposits of amounts above N500,000 will attract 2% processing fees, while withdrawals attract 3% processing fees for individual accounts.

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

The development had attracted heavy backlash from Nigerians who claimed the fees to be deducted from withdrawals and deposit were too high and will rather create more hardship. 

Also, the House of Representatives on Thursday asked the CBN to suspend the charges imposed on cash deposits until appropriate and extensive consultative process is concluded.

But in a swift response, the apex bank in a tweet on its official twitter handle said “the Cash-less Policy deposit/withdrawal charge is only on the amount in excess of the limit.

“For instance, if you deposit a cash of N501, 000.00. N1, 000.00 is in excess of the limit. The bank will charge you 2% of N1, 000.00 which is N20.00.”

The bank further explained that the policy is strictly applicable to cash-based transactions and not electronic banking.