CBN suspends charges on withdrawal, says banks should revert to old policy

The Central Bank of Nigeria (CBN) has suspended its earlier directive on the implementation of cashless policy till further notice.

The apex bank in a circular released on Friday, instructed banks to revert to old charges as deposit processing fee charges above the threshold contained in circulars dated Feb. 21 are hereby suspended until further notice.

CBN had earlier announced new charges on deposit and withdrawals above a threshold of N500,000, instructing banks to charge 5% and 10% for deposits and withdrawals above N40m in the corporate category.

But in the circular signed by Director of banking and payments system department, Dipo Fatokun, CBN ordered banks to refund customers who have been debited and revert to former policy.

The circular read: “You will recall that a directive was issued on the nationwide implementation of the cashless policy vide our circulars with reference numbers BPS/DIR/GEN/CIR/04/001 dated February 21 and BPS/DIR/GEN/CIR/04/002 dated March 16.

“Please note that the new withdrawal and deposit processing fee charges above the threshold, as contained in the circulars referenced above, are hereby suspended until further notice.

“The position of the policy shall now revert to the status quo ante.”

“The old charges to be reverted to 3% processing fee for withdrawals above N500,000 in the individual category and 5% for withdrawals above N3 million.

“The new policy already applied effective April 1, 2017 as contained in the circulars in reference above should be reversed and the old charges be applied.

“All necessary refunds should be made accordingly.”