Banks To Charge N300,000 When You Deposit N10m From April

The Central Bank of Nigeria on Thursday announced that  charges on certain categories of cash deposits and withdrawals will be reintroduced.

The reintroduction is coming about three years after the CBN stopped the charges.

In a circular to all Deposit Money Banks posted on its website, the apex bank said the decision to reintroduce the charges on cash deposits was part of the review of charges on deposits and withdrawals under the cashless policy.

According to the regulator, the decision was taken at the Bankers' Committee meeting, which held in Abuja two weeks ago.

The circular, signed by the Director, Banking and Payments System Department, CBN, Mr. Dipo Fatokun, directed that with effect from April 1, 2017, banks in the states where the cashless policy was already operating, Lagos, Ogun, Anambra, Abia, Kano, Rivers and the Federal Capital Territory, would begin to impose charges on deposits and withdrawals above N500, 000.

Banks will from that date begin to charge individuals 1.5 per cent and two per cent for deposits and withdrawals between N500, 000 and N1m.

According to the circular, individuals depositing or withdrawing between N1m and N5m will be charged two per cent and three per cent, respectively.

For amounts above N5m, banks will charge such individuals three per cent and 7.5 per cent for deposits and withdrawals, respectively.

For deposits and withdrawals between N10 m and N40 m, customers will be charged three per cent and 7.5 per cent, respectively. Deposits or withdrawals above N40 m by corporate customers will attract a charge of five per cent and 10 per cent, respectively.

The regulator noted that the committee agreed that income generated from the processing fees above the allowable cash limits would be shared between it and the banks in the ratio of 40 :60.