Cashless Policy: Banks Deduct Charges On Withdrawals Nationwide

In line with the cashless policy of the Central Bank Of Nigeria (CBN), deposit money banks nationwide are to deduct charges on cash withdrawals that exceeds the set daily limits.

In June 2014, the Central Bank of Nigeria, said charges on withdrawals for both individual and corporate account holders would be suspended in 30 states of the federation till July 1, 2015.

Godwin Emefiele, CBN Governor

The charges earlier suspended are reintroduced to continue the modalities for the  next phase of the cashless policy.

A statement released and sent to its customers by Guarantee Trust Banks (GTB),  states the modalities which are currently operational in Lagos, Federal Capital Territory (Abuja), Abia, Anambra, Kano, Ogun and Rivers States will now be effective nationwide, including the previously exempted 30 states of Nigeria.

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GTB explains that for individual account holders charges will apply when daily cumulative withdrawals are in excess of N500,000 while for corporate account holders, charges will apply when daily cumulative withdrawals are in excess of N3, 000,000.

Under the cashless policy guidelines, 3 per cent charge would be administered by banks for daily individual cumulative or single cash withdrawals in excess of N500,000, and 5 per cent charge on daily cumulative or single cash withdrawals in excess of N3mn.

‘’ The Cashless policy applies to all accounts including collection accounts i.e. all sub-accounts linked to the same account holder would be treated as one account for both corporate and individual accounts’’ the statement reads.
The statement further states that the above limits apply to all cash related transactions, irrespective of channel i.e. over the counter, ATM, 3rd party cheques cashed over the counter, among others”.

”For example, if an individual withdraws N450,000 over the counter, and N150,000 from the ATM on the same day, the total amount withdrawn by the customer is N600,000, and the service charge will apply on N100,000 – the amount above the daily free limit of N500,000”

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”Exemptions have however been granted on withdrawals for accounts operated by embassies, diplomatic missions, multilateral agencies, aid donor agencies, ministries, departments and agencies of government (revenue collections only), microfinance banks and primary mortgage institutions.” it reads.

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