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The Central Bank of Nigeria (CBN) has announced a review of the process for merchant settlement.
This is even as the apex bank announced that its cashless policy will go live from March 2020.
In a statement signed by the Director, Payments System Management Department at the bank, Sam Okojere, on Tuesday, the CBN said “with effect from September 17, 2019, the CBN has approved for banks to unbundle merchant settlement amounts and charge applicable taxes and duties on individual transactions as stipulated by regulations.”
The CBN also announced a downward review of the Merchant Service Charge (MSC) from 0.75 percent capped at N1,200 to 0.50 percent capped at N1,000.
The statement indicated that the effort is to further promote a cashless economy and enhance the collection of applicable government revenues.
The CBN, in a circular to all deposit money bank (DMBs), also announced the commencement of charges on deposits in addition to already existing charges on withdrawals.
According to the circular, “the charges, which take effect from Wednesday, September 18, 2019, will attract 3 percent processing fees for withdrawals and 2 percent processing fees for lodgments of amounts above N500,000 for individual accounts.”
Similarly, “corporate accounts will attract 5 percent processing fees for withdrawals and 3 percent processing fee for lodgments of amounts above N3,000,000.”
The statement, however, disclosed that the charge on deposits shall apply in Lagos, Ogun, Kano, Abia, Anambra, and Rivers States as well as the Federal Capital Territory.
It added that the implementation of the cashless policy would take effect from March 31, 2020 nationwide.
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