The Deposit Money Banks (DMBs) in Nigeria are in for an immediate refund of monies, which may be running in multiple of millions, arising from unauthorized charges on withdrawals above threshold by customers in 30 states. The Central Bank of Nigeria (CBN), in a letter signed by the Director of Banking and Payments System Department, ‘Dipo Fatokun, ordered DMBs that have started applying charges on withdrawals above limit by individuals and corporates to reverse it, as well as stop henceforth. All the states of the federation except Abia, Anambra, Kano, Lagos, Ogun, Rivers and the Federal Capital Territory are included. The 30 states were part of the third phase of the cash-less project initiated by CBN, which was extended in those territories in July 1, 2014. As part of efforts to stimulate response, as well as in line with what was done in the first and second phases, CBN put on hold charges against withdrawal above the threshold until further notice. By the rule of the cash-less project, withdrawals by individuals and corporates that are above N500,000 and N3 million attract a three per cent and five per cent charges respectively on the excess values. But in what appears like a hasty conclusion, the nation’s banks “jumped the gun” from July 1, 2015, by commencing charges on withdrawals above the limit in those states, without notification from the regulator, perhaps in erroneous judgement that it was overdue after one year of commencement. Recently, the regulator had also reviewed issues about the proceeds of the charges, deciding that they would no longer be wholly taken by the banks, but shared with CBN. – Guardian.
Culled from: The Citizen Ng