MONDAYBUSINESS MONEY MATTERS More reactions trail CBN planned re-introduction of cash handling fees
More bank customers have continued to react to the news of a possible re-instatement of cash handling fees by the Central Bank of Nigeria with some expressing concern that the move is capable of derailing the financial inclusion drive in the country.
The reaction is pouring in on the heels of a hint by the CBN that it had concluded arrangement to re-introduce cash handling fees for both deposit and withdrawal as the Board of Governors had approved the full implementation of the cashless policy nationwide.
The CBN Deputy Governor, Operations, Adebayo Adelabu, gave the hint while addressing the annual dinner of the Nigerian Electronic Fraud Forum ( NeFF) in Lagos last weekend.
Adelabu said: “The committee of governors has approved the implementation of the full cashless policy on Wednesday and the CBN will release a circular which will detail out the process of readoption of the policy by next week (last week)”
Madam Grace Ayeni, a market woman who deals in grains said, “my business requires that I take cash into the rural areas to buy grains and these are people who will take nothing other than cash, getting charged for accessing my money is not fair.
“Based on what we say with the last operational guideline, it was clear we were only going to be working for the banks.”
Alhaji Kazeem, a petrol station operator in Lagos said: “The CBN must understand that the majority of Nigerians live in the rural areas, so if rural areas are populated by somewhat old, illiterate persons, how then can they introduce such policies without scaring the hell out of them, forcing them to abandon banking altogether.
“What they should have done is introduce it gradually for all urban dwellers, so that the 100% cashless banking can take hold there and become a way of life, before it gradually spreads to the villages.
Francis Obi, a tech expert in his reaction said: “Ordinarily, the question would be, Why would you want to withdraw such cash? Or is it to think that this is a tax that applies only to the rich. But the fact of the matter is there is a huge technology gap. People aged 50-90 years are not tech savvy, some can’t even operate the ATM, and we want them to have mobile applications, USSD services and POS? Cashless will be fully established with time.”
It could be recalled that the apex bank had in April 22, 2017, suspended indefinitely, the nationwide implementation of the policy following the massive outcry that greeted the review in cash handling fees.
Another customer, Farouk Nano Bello, kicked against the charges especially the percentage which the customers will be charged.
Bello said for people who must have acquired the money via legal means, it was unfair to deduct such amount.
“For instance, people that require generating sets for their businesses and you charge them 3% or 5% of their total withdrawals or deposits, what benefit will they get from the government in promoting their business in return? People worked so hard for this money and should not just be charged like that unnecessarily without remorse. So to me the percentage is way too high and condemnable,” he lamented.
A business woman, Hajiya Safiya Bello, said the development is long overdue as it is important for the cashless policy to thrive.
Bello added that with the introduction of the policy, it will reduce the way money is in circulation and also discourage incessant withdrawals by customers.
“When you look around your environment, there are dirty and mutilated naira notes especially N100. The reason is because money is in circulation at a very high rate and the cashless policy will at least curb the situation,” she said.
Dangana Emmanuel, a ginger farmer in Jaba Local Government Area of Kaduna State while reacting to the proposed plan by CBN, lamented the move as, according to him it will leave them with in dilemma, on taking their money to the bank or keeping it in their houses which he sees as “risky”.
“We are begging the Federal Government, through the CBN, to look at medium-scale business people like us and withdraw the planned charges because the little we save in the bank is what we use for emergency purposes after harvest time. But with the charges, we won’t have what to save at the end of the day,” he pleaded.
In a circular signed by Dipo Fatokun, Director, Banking and Payments System Department of CBN, the apex bank instructed banks to revert to old charges and refund customers who had been debited.
CBN had earlier announced new charges on deposit and withdrawals above a threshold of N500,000 for individuals and N3 million for corporate bodies.
The apex bank had directed banks to charge 1.5 percent and 2 percent for deposits and withdrawals ranging from N500,000 and N1 million in the individual category; 2 percent and 3 percent for amounts above N1 million to N5 million; and 3 percent and 7.5 percent for amounts above N5 million.
For corporate bodies, CBN fixed 2 percent and 5 percent for deposits and withdrawals between N3 million and N10 million respectively; 3 percent and 7.5 percent for above N10 million to N40 million; and 5 percent and 10 percent for amounts above N40 million.
But the new circular said the existing policy before the announcement of the new policy shall remain in place in Lagos, Ogun, Kano, Abia, Anambra, Rivers and Abuja.
The circular further stated that the old charges to be reverted to are: 3 percent processing fee for withdrawals above N500,000 in the individual category and 5 percent for withdrawals above N3 million for corporate category, while no fees are charged for lodgments.