CBN introduces new charges on transactions above N500,000 on individual bank accounts

Nigeria's central bank imposes new charges on every deposit and withdrawal on bank accounts
The new charges kick off with immediate effect in some states.
Sam C. Okojere, Director, Payments System Management Department says the nationwide implementation of the cashless policy will take effect from March 31, 2020.

Nigeria's Central Bank has approved additional charges on deposits and withdrawals in the country.

In a circular issued to all banks on Tuesday, September 17th, titled: "Re: Implementation of the Cashless Policy," CBN said the new charges on depositors apply to those in Lagos, Ogun, Kano, Abia, Anambra, Rivers state and the FCT immediately.

The statement further stated that the new charges would be in addition to existing charges on withdrawal, effective September 18, 2019.

President Muhammadu Buhari with CBN Governor, Godwin Emefiele [TheCable] Pulse Nigeria

The details of the additional charges below:

Individual account

Above N500,000

Withdrawal/Lodgement limits - 3%
Deposits - 2%

Corporate account

Above N500,000

Withdrawal/Lodgement limits - 5%
Deposits - 3%.

CBN new charges on cashless policy Pulse Nigeria

CBN Cashless Policy

Business Insider SSA understands that this policy is in continuation of CBN's cashless policy. In 2012, the apex bank introduced the policy on cash-based transactions which stipulates a cash handling charge on daily cash withdrawals that exceed N500,000 for Individuals and N3,000,000 for Corporate bodies.

According to the CBN, the new policy on cash-based transactions (withdrawals) in banks, aims at reducing (NOT ELIMINATING) the amount of physical cash (coins and notes) circulating in the economy and encouraging more electronic-based transactions (payments for goods, services, transfers, etc.)