Home BANKING & FINANCE CBN Reduces, Unbundles Charges On Electronic Merchants Collections

CBN Reduces, Unbundles Charges On Electronic Merchants Collections

To promote a cashless economy and enhance the collection of applicable government revenues, the Central Bank of Nigeria (CBN) has announced a review of the process for merchant settlement.

A statement today, September 17, by the Director, Payments System Management Department at the apex bank, Sam Okojere, said that with effect from today, September 17, 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 statement also announced a downward review of the Merchant Service Charge (MSC) from 0.75% capped at N1,200 to 0.50% capped at N1,000.

And in a circular to all deposit money bank (DMBs), the apex bank 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 tomorrow, September 18, will attract 3% processing fees for withdrawals and 2% processing fees for lodgments of amounts above N500,000 for individual accounts.

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Similarly, corporate accounts will attract 5% processing fees for withdrawals and 3% 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.