CBN Reverts Cashless Policy, Directs Banks To Refund Charges

The Central Bank of Nigeria has suspended charges on withdrawals and deposits under the recently implemented cashless policy, directing banks to refund the charges earlier deducted.


The apex bank in a circular issued yesterday and signed by the director, Banking Supervision, ‘Dipo Fatokun said the policy is being suspended until further notice.

CBN had earlier announced new charges on deposit above a threshold of N500,000 for individuals and N3 million for corporate. Banks were told to charge five per cent and 10 per cent for deposits and withdrawals above N40 million in the corporate category.


The bank had fixed 1.5 per cent and two per cent for deposits ranging from N500,000 and N1 million in the individual category.

But in the circular signed by Dipo Fatokun, director, banking and payments system department, CBN said the existing policy before the announcement of the new policy shall remain in place in Lagos, Ogun, Kano, Abia, Anambra, Rivers and Abuja.

“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,” the circular read.

“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.”