By Francis Ogwo
In compliance with the ongoing nationwide cashless policy of the Central Bank of Nigeria (CBN), Deposit Money Banks (DMBs), as at June 16, 2020, begun applying necessary charges, according to the directive.
This is according to a series of tweets and directives sent by the member banks.
The cashless policy, an initiative introduced by the CBN, was to reduce the amount of physical cash in circulation towards boosting electronic platforms for settlement or payment for goods and services.
One of the DMBs, precisely Fidelity Bank Plc, had on June 16, 2020, reportedly sent a notice to its numerous customers, updating them on the initiative.
The content of the note was “Kindly note that commencing June 16, 2020, the Central Bank of Nigeria (CBN)’s cashless policy will take effect nationwide. With this policy in place, all cash transactions by individuals and corporates above the limits will attract processing fees.”
Recall that on September 18, 2019, the CBN had issued a circular allowing for bank charges on deposits effective the same day. This was rejected by the public, leading to the National Assembly suspending the charges.
In the directive, customers are to pay huge fees for cash deposit or withdrawal above N500k individual or N3m corporate in Abia, Abuja, Anambra, Kano, Lagos, Ogun or Rivers States. Other states in the country were to be effective from March 31, 2020, until the delay from the intervention by the National Assembly.
The Director, Payment System Management Department, Sam Okojere, had in the circular to deposit money banks, ordered that the nationwide implementation of cashless policy would take effect on the stated date.
In his response to the directive, the Head of Tax, Taiwo Oyedele on his tweeter account had said the policy will affect supermarkets and retailers especially with huge cash inflow, and even tax collectors who pull in taxes in cash.
He disclosed that if the policy is not implemented carefully with relevant exemptions, it would affect financial inclusion negatively and further serve as impediment to ease of doing business especially for small businesses.
Another DMB, Access Bank Plc also in a note to its customers on ‘important update on stamp duty’, stated, “You may recall that the CBN mandated a charge of N50 as stamp duty charge on all credit received into current and savings accounts.
“This is in respect of deposits and electronic transfers into all Naira-denominated accounts for transaction values of N10,000 and above.
“We recently discovered that the charges on applicable transactions carried out between February 1, 2020 and April 30, 2020 were inadvertently not passed on your account. We sincerely apologise for this.
“However, in compliance with the CBN mandate, we will be required to process the accumulated charges for the said period on your account for remittance to the Central Bank of Nigeria.” the note concluded.
Fidelity Bank also, had on March 18, 2020, informed its customers that stamp duty charges have been extended to savings accounts with effect from February 1, 2020. This, according to them, is in line with the recent Finance Act 2020, which was signed by President Muhammadu Buhari on January 13, 2020.
This development, analysts say, will result to changes in stamp duty collection in the Finance Act.
