Everything You Need To Know about CBN Policy of Paying for Bank Deposits
Here’s Everything You Need To Know about CBN Policy of Paying for Bank Deposits and withdrawals, explained in layman’s terms.
The Central Bank of Nigeria has announced that the nationwide implementation of the cashless policy will begin by March 31, 2020.
Since this announcement was made, there have been different versions of rumours on the the interpretation.
The implementation of the policy would signal the imposition of charges on deposits and withdrawals.
The charges will take effect from Wednesday, September 18, 2019, and apply in Lagos, Ogun, Kano, Abia, Anambra, and Rivers States as well as the FCT.
This was made known in a circular to all Deposit Money Banks (DMBs) in the country on Tuesday, September 17.
- The charges will take effect from Wednesday, September 18, 2019, and will attract three percent processing fees for withdrawals and two percent processing fees for lodgments of amounts above N500,000 for individual accounts.
- For corporate accounts, the apex bank in the circular said that DMBs would charge five percent processing fees for withdrawals and three processing fee for lodgments of amounts above N3,000,000.
Now Let’s explain and break it down further
- The charges apply daily and not per transaction.
- You can only deposit up to ₦500,000 daily. If you exceed it, the amount in excess will be charged for that day.
Let me paint a scenario for you.
- Mr. A has ₦10,000,000.00 (ten million naira) only he wants to deposit in a Bank tomorrow, Friday, 20 September, 2019.
- Mr. A can only deposit ₦500,000.00 (five thousand naira) only for that day without him being charged 2%.
- If he deposits the whole ₦10,000,000.00 Mr. A will be charged 2% of the total deposit he made for the day.
- That is to say if Mr. A for instance deposits ₦5,000,000.00 and another ₦5,000,000.00 that same day on two occasions, his total deposit for the day will be summed up and 2% charge deducted from the account.
- That is to say ₦200,000 (Two hundred thousand naira) only will be deducted from him for that day for depositing ₦10,000,000.00 for the day.
- However, if Mr. A goes to a Point of Sale (POS) merchant to pay that money to his account that is, the ₦10,000,000.00 he will not be charged this 2%.
- Likewise if the money is transferred to him through mobile transfer, he will not be charged the 2%.
- The money is only charged on Over-The-Counter (OTC) transactions.
The federal government is trying to discourage carrying huge amount of money around.
If you must deposit the ₦10,000,000.00 without incurring the 2% charge, it is best you deposit it ₦500,000 every day until you pay in the ₦10,000,000.00 without incurring the charge.
I believe this is clear enough. ????.