Banks set to enforce penalty for cashless banking

By Akinola Ajibade
culled from: THE NATION Newspaper

Some banks have written their customers ahead of the March 30 deadline for the enforcement of the penalty for breaching the cash withdrawal limit.

  According to the rule of the Central Bank of Nigeria (CBN) for the e-payment initiative, the daily withdrawal and lodgement limit for individuals and corporate bodies is N150,000 and N1 million. 

The banks, in e-mails, sent to their customers said March 30, has been set for the introduction of charges for all transactions relating to withdrawal and lodgements of cash. 

Guaranty Trust Bank in an e-mail states: "In our continuous effort to ensure excellent service experience, we have provided a bouquet of easy, convenient and safer banking channels as follows: Point of Sale (POS) Terminal, Automated Teller Machine (ATM), GTConnet, Internet Banking, among several others. Effective March 30, 2012, there will be a service charge on any excess amount over the daily cumulative limits to be borne by account holders (set at 10 per cent for an individual account holders and 20 per cent for corporate account holders). Transactions initiated (above the stated limit) from Lagos State into an account outside Lagos State: e.g. Abuja, into a Lagos account would not attract charges.

Also, Fidelity Bank in a mail, stated: "In our avowed commitment to continually make financial services easy and accessible to you, we have put together various products and services to ensure that we make your transition to a cashless society as seamless as possible."

The bank added that: "Cumulative daily cash deposits and withdrawals are restricted to N150,000 for individuals and N1,000,000 for corporate. Effective April 1, 2012, there will be a service charge on all transactions above the set limits at the rate of 10 per cent for individuals and 20 per cent for corporate. Third party cheques for payment across the counter are restricted to N150, 000 for cheques issued by individuals and N1 million for cheques issued by companies. Amounts above this limit can only be paid through account-to-account transfer or clearing. For the avoidance of doubt, third- party cheque above the set limits presented for encashment will not be accepted from April 1, 2012."

In a related development, Access Bank said March 30 has been set for the implementation of charges on daily cumulative cash deposits and withdrawals above the specified threshold.

The bank said the daily cumulative limit refers to daily account activities involving cash irrespective of the channel or combination of channels used for the cash activities. 

The others include Intercontinental Bank Plc, Keystone Bank Limited, Mainstreet Bank Limited, Access Bank Plc and Fidelity Bank Plc. According to the banks, a bouquet of banking channels has been provided as part of efforts to ensure the success of electronic cash payment scheme.

The Central Bank of Nigeria (CBN) had in a circular to all banks set April 1, 2012 as the take-off date for the implementation of charges relating to violation of cash-lite policy rules. CBN instructed the banks to comply with all the rules guiding the implementation of the policy to foster growth.

In the circular, the apex bank called for the electronic payments of suppliers, all forms of taxes, salaries and pensions by both private and public organisations with more than 50 employees/pensioners in Nigeria.