The Central Bank of Nigeria (CBN) has introduced a new 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.
The new policy take effect from Wednesday the 1st of April, 2020. This comes as an addition to the already existing charges on the cash deposit.
It means, when you withdraw cash over 500,000 Naira from any of your commercial Bank, you will be charged as stated below:
- For an individual account, withdrawals over 500,000 Naira will be charged a processing fee of 3%, while 2% will be charged for lodgement.
- For cooperate Account, withdrawals of over 3,000,000 Naira will be charged a processing fee of 5%, while 3% will be for lodgement.
Under the cashless policy, CBN says the payment of deposit/withdrawal charge is a choice by individuals and businesses. The bank said there are other options to receive and pay out money above the limits without having to pay any charge.
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.)
These new policies have brought about the divergent views across the country. Do you think this policy was necessary or you think the fees are too much?
Let’s hear your views via the comment section.
1 thought on “See the New CBN Shocking Policy on Cash Withdrawals – Start on 1st of April”
Well, there is nothing wrong with the policy, but considering the state of Nigeria internet banking system… I will say that the country is not ready for this until it attains it's best state for internet transaction credibility.