Banking & Finance

Customers express disappointment over CBN’s directive on transaction charges

Customers express disappointment over CBN’s directive on transaction charges
Written by Maritime First

Some banks customers Wednesday, expressed disappointment on the directive of the Central Bank of Nigeria (CBN) to Deposit Money Banks (DMBs) on new charges on certain lodgements and withdrawals.

A cross section of customers who spoke in Abuja described the policy as unfriendly.

The CBN on Tuesday issued a circular to deposit banks to commence the implementation of the cashless policy in six pilot states across the country.

The apex bank directed that implementation should commence from Sept 18 in Lagos, Ogun, Kano, Abia, Anambra, and Rivers States, as well as the Federal Capital Territory.

It, however, stated that the nationwide implementation of the cashless policy would take effect from March 31, 2020.

The CBN explained that transactions will attract three per cent processing fees for withdrawal and two per cent processing fees for lodgement of amounts above N500, 000 for individual accounts.

Also read: Experts lauds CBN’s proposed policy for loan defaulters to forfeit deposits in other banks

Similarly, corporate accounts will attract five per cent processing fees for withdrawal and three per cent processing fee for lodgement of amounts above N3 million.

Alhaji Abdullahi Bello, a civil servant said the adjustment sent wrong signals to customers and people that did not have bank accounts.

Bello said there were so many charges which the DMBs had surreptitiously imposed on customers.

He said now that CBN had given them the leeway for other charges, the situation would be unbearable.

“I am surprised that CBN that has been campaigning for financial inclusion and wanting to increase the number of Nigerians patronising the banking system is coming up with such interest rates.

“The question is how do you encourage people to bank their money when existing customers are being discouraged with all sorts of bank charges? ”

Mr Peter Kunle, a businessman, said the directive was not a good development to bank customers.

Kunle said that charges for lodgements would have been unnecessary since there was already a charge for withdrawal.

He said that the masses already had more than enough financial burden, and this was unnecessary.

Mr Cletus Magbo, also a businessman, highlighted that the news on the CBN’s directive to deposit banks came to him as a shock.

Magbo said though he was aware of the government’s cashless policy, he never knew the banks needed to charge fees on lodgements and withdrawals in an attempt to implement the policy.

He stated that if the CBN could find other ways to implement the policy without charging any fees on lodgement and withdrawal, it would be better.

 

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Maritime First