NLNG Corporate Respect banner First bank FinTech summit Fidelity bank card banner Emerald Energy Institute Camano banner

CBN clears the air on cashless policy transaction charges

By News Express on 24/09/2019

Gmail icon

Views: 2,185

•CBN Governor Emefiele
•CBN Governor Emefiele

The Central Bank of Nigeria (CBN) says the transaction charges on deposit and withdrawal in furtherance of implementation of its cashless policy is on the amount in excess of the set limits.

The Director, Corporate Communication Department, Mr. Isaac Okorafor, made the clarification in an interview with News Agency of Nigeria (NAN) in Abuja on Monday. NAN reports that CBN on Sept 17 issued a circular to deposit banks to commence the implementation of the cashless policy in six pilot states across the country.

The CBN explained that transactions would attract three per cent processing fees for withdrawal and two per cent processing fees for lodgement of amounts above N500,000 for individual accounts.

Similarly, corporate accounts would attract five per cent processing fees for withdrawal and three per cent processing fees for lodgement of amounts above N3 million The apex bank directed that implementation should commence from September 18 in Lagos, Ogun, Kano, Abia, Anambra, and Rivers States, as well as the Federal Capital Territory (FCT).

It, however, stated that the nationwide implementation of the cashless policy would take effect from March 31, 2020.

Okorafor explained that contrary to the misconception on the implementation of the policy, the charges would only be on the excess of N500,000 deposited or withdrawn for individual and N3 million for corporate body.

According to him, if an individual deposited N510,000 the two per cent charge would be on the N10,000 excess which is N200 only.

He said the same applied to a withdrawal of same amount, adding that the three per cent charge would be on excess of the set limits.

He said that the same thing also applies to the corporate body also which five per cent on withdrawal and three per cent on lodgement of amounts above N3 million. Many Nigerians welcome the development, noting that it would enhance transparency in financial dealings and reduce crimes such as ransom payment and extortion among others.

Others, however, described it as additional burden on banks’ customers who were already laden with other charges by the banks. CBN Governor Godwin Emefiele had also said, after the Monetary Policy Committee meeting on Friday in Abuja, that the policy was inaugurated in the country in 2012 and implementation began in 2014.

“The policy says if you deposit money in the bank above a particular threshold which for individual is N500,000 and N3 million for corporate bodies, then you will be charged, same for withdrawal.

He stated that the policy was not designed to de-franchise hard working Nigerians as perceived by some categories of people. According to him, a data conducted, revealed that close to 95 per cent of cash deposited and withdrawn fall below this threshold.

Emefiele said Nigerians had already embraced electronic channels and online transaction in market places.

He added that Micro, Small and Medium Enterprises now had various options and channels available to collect a legitimate payment for goods and services, like POS, banks transfer using ATM, USD code among others.

He said that the cashless policy increases transparency in financial dealings and reduce crimes such as ransom payment and extortion among others.

The governor said the bank had the mandate under the CBN Act 2007 as amended to promote a sound and stable financial system through credible efficient payment system. (NAN)

 

Source News Express

Posted 24/09/2019 05:26:52 AM

 

 

CLASSIFIED ADS

 

You may also like...
Man dies after falling off moving train in...

Tradermoni: Presidency accuses Fayose, PDP of mischief

4 in police net over alleged sale of...

Weather Report for Sunday, Dec. 30, 2018

PDP heading for self-destruction in Kogi East, youths...

Protest as land grabbers sack Ogun villages, install...

National Security Summit commences in Abuja

South Africa tightens supervision of appointments of bank...

Coalition condemns arrest of APC chieftain, 5 others...

Police appoint new Head of Complaint Unit

Airtel woos Facebook users, introduces special complementary service...

Okonjo-Iweala bags Liberia’s highest honour

 

Latest News Two killed, several injured as Airforce men go on rampage over alleged harassment of colleague's girlfriend Anxiety over Governor Akeredolu's health Senate rejects Ministry of Niger Delta’s budget Suspected serial killer David West, who allegedly confessed to killing 15 women, arraigned in Port Harcourt Gunmen sack 16 villages in Kaduna, kill 3 vigilantes Noise pollution: Court seals Anambra church Abaribe condemns purported impeachment of Kogi Deputy Governor US boosts Nigeria's war against terrorism with radiation systems Declare Onitsha fire incident national disaster, Ohaneze tells FG Two escape death in Onitsha container accident Expert identifies reason for rise in Type 2 diabetes in children Exploitation: How magistrate gave ruling against 52 hotels in 3 hours – Hoteliers

 

Most Read NUDE PHOTO OF OMOTOLA JALADE-EKEINDE surfaces online (552,444 views) Nigerian female sex addict opens up, says ‘I like it with both men and women’ (447,978 views) Shameless Genevieve Nnaji exposes breasts in public (395,718 views) Finally named: The full list of friends of Nigerian female sex addict who prowled Facebook (331,191 views) OLUMBA OLUMBA OBU (the one who called himself God) IS DEAD (299,540 views) 10 cars more expensive than Jets (266,501 views) Igbo scholar disgraces Femi Fani-Kayode •Demolishes claims on Igbo/Yoruba history with facts and figures (256,405 views) Breaking News: POPULAR REVEREND CONVERTS TO ISLAM in Kaduna (Nigeria) (253,791 views) OBJ’s son reported dead in Lagos plane crash •Names of more victims emerge (235,325 views) My wasted years in Olumba Olumba Obu’s Evil Brotherhood (221,482 views) Lagos plane crash: Journalist releases victims’ names (198,911 views) THE FINAL DISGRACE: Igbo scholar unleashes more facts about Igbo/Yoruba history, finishes off Femi Fani-Kayode with second article (196,037 views)

 

CBN milk production

CBN banner advert

UBA Wise Savers Promo

 

Categories Advertorials (3) African Press Organisation (81) Art & Literature (105) Business & Economy (4,505) Business Verdict (85) Columnists (1,131) Complaints & Requests (97) Enterprise & Opportunities (218) Entertainment (693) Features (837) Global Business Monitor (471) ICT Monitor (66) International (4,102) Interview (205) Live Commentary (30) Love Matters (174) Maggie's Blog (452) News (52,925) Opinion (1,400) Pidgin (17) Politics (11,592) Religion (1,112) Sports (2,198) Stock Watch (39) AMA & Al Jazeera Global Update

 

 

 

 

 

 

APO Group Partner

 

 

CLASSIFIED ADS

GOCOP Accredited Member

GOCOP Accredited member

 

 

Africa Media Agency and Al Jazeera