CBN suspends new charges on large withdrawals

Central Bank of Nigeria (CBN) has directed Banks to suspend the recently introduced increases in charges on over-the-counter withdrawals of above N500,000 or deposit of same amount for individuals and N3million for corporate bodies.
The new directive was communicated by the apex bank’s Director, Banking and Payments System Department, Mr Dipo Fatokun.
Fatokun said in a circular dated April 20, 2017, that all the charges introduced in February, and meant to take effect from April 1, 2017, have been dropped.
“For further clarification, the existing policy prior to the announcement of the new policy as earlier implemented in Lagos, Ogun, Kano, Abia, Anambra, Rivers states and the FCT shall remain.

“For the avoidance of doubt, the old charges to be reverted to are as follows: Individual charges on withdrawals or lodgment limit is now three per cent.
“Corporate accounts will be charged five per cent for withdrawal or lodgment of over N3 million cash.
“Henceforth, nothing will be charged as processing fees for lodgments,” he said.
Fatokun directed banks to make all necessary refunds to customers with immediate effect.
The CBN in February announced its plan to extend the Cashless Policy to all the  states of the Federation by Oct. 1, 2017, to enhance the efficiency of payment systems.

This policy was to commence in phases within the country with effect from April 1, 2017. The policy introduced charges on the cumulative cash withdrawals or deposits per customer per day, irrespective of the channels used either over-the-counter or ATM.
The charges for individuals was two per cent for withdrawals above N500,000 to N5 million, 1.5 per cent on deposits for N500,000 to N1 million, and three per cent on deposits above N1 million to N5 million.
Also, individual withdrawals above N5 million was to incur a 7.5 per cent charge.