CBN to apply charges on withdrawals and deposits to boost electronic fund transfers

Oct 01, 2013

The Central Bank of Nigeria (CBN) will start applying charges on withdrawals and deposits above N500,000 (€2,300) for individuals and N2 million for corporate bodies, a CBN official has revealed.

The Central Bank of Nigeria (CBN) will start applying charges on withdrawals and deposits above N500,000 (€2,300) for individuals and N2 million for corporate bodies, a CBN official has revealed.

Deputy Governor Tunde Lemo said in Abuja on Friday (September 27th) that the action would ensure effective implementation of the cashless policy, Vanguard reports.

He explained that from October 2nd, any customer that deposited above N500,000 per day will be charged a two per cent fee, while a three per cent charge would be applied on withdrawals above the limit.

For companies, the threshold is N2 million, with a three per cent charge on deposits and a five per cent charge on withdrawals above this amount.

Mr Lemo said that customers do not need to go through the "onerous task" of depositing and withdrawing money over the counter, and suggested they use electronic fund transfers instead.

Before the introduction of the cashless policy in Nigeria, only two per cent of retail transactions were done electronically. This figure is now at around 20 per cent, according to the CBN.

The NIBSS Instant Payment driven by the Nigerian Inter Bank Settlement System accounts for three times the volume of cheques used in transactions.ADNFCR-2976-ID-801644191-ADNFCR