#FeatureFriday - The New Way Banks Intends To Drain Nigerians

Today On FeatureFriday,Our Discourse Is
Banks begin nationwide
implementation of charges on withdrawals

Deposit Money Banks nationwide are set to start
exerting charges on cash withdrawals by their
customers in excess of set limits.
In June 2014, the Central Bank of Nigeria, while
announcing the take-off of the third and final phase
of the cashless policy, said charges on withdrawals
for both individual and corporate account holders
would be suspended in 30 states of the federation
till July 1, 2015.
The CBN said the waiver was to allow ample time
for the banks to deploy adequate infrastructure
needed to support the cashless policy as well as
enable additional sensitisation of various bank
customers on the merits of the policy.
The roll out exercise followed the successful
completion of Phases 1 and 2 of the policy in six
pilot states, namely Abia, Anambra, Kano, Ogun
and Rivers States, as well as the Federal Capital
Territory, Abuja.
Under the cashless policy guidelines, 3 per cent
charge would be administered by banks for daily
individual cumulative or single cash withdrawals in
excess of N500,000, and 5 per cent charge on
daily cumulative or single cash withdrawals in
excess of N3mn.
In line with the policy roll-out, GTBank, in a
statement to all its customers on Thursday, said
charges on cash withdrawals above the stipulated
daily limits that has been in operation in the six
states in the first phase and the Federal Capital
Territory (Abuja) would now be effective
nationwide, including the previously exempted 30
states of Nigeria.
“For individual account holders, charges will apply
when daily cumulative withdrawals and deposits
are in excess of N500,000,” the bank statement
said.
For corporate account holders, the bank said
charges would apply when daily cumulative
withdrawals are in excess of N3 million.
The cashless policy, the bank explained, was
applicable to all categories of accounts, including
collection accounts, namely all sub-accounts
linked to the same account holder, to be treated as
one account for both corporate and individual
accounts.
The bank said the charges will apply so far as they
involve cash withdrawals, irrespective of channel,
whether over the counter, ATM, and third party
cheques cashed over the counter.
“For example, if an individual withdraws N450,000
over the counter, and N150,000 from the ATM on
the same day, the total amount withdrawn by the
customer is N600,000, the service charge will
apply on N100,000 – the amount above the daily
free limit of N500,000,” the bank explained.
Exemptions, the bank said, have, however, been
granted on lodgments and withdrawals for
accounts operated by Embassies, Diplomatic
Missions, Multilateral Agencies, Aid Donor
Agencies, Ministries, Departments and Agencies of
Government (revenue collections only),
Microfinance Banks (MFBs) and Primary Mortgage
Institutions (PMIs).