Cashless Policy: CBN Clarifies Transactions at Agent Locations

The Central Bank of Nigeria (CBN) has explained that under the cashless policy, agent locations are omitted from paying processing fees or tax on cash out done.

The central bank also said they would constantly take proactive measures to curb e-payment fraud by continuous collaboration with banks as well as capacity building for financial institutions fraud departments.

The Director, Payments Systems Management Department, who is also the Chairman of the Nigeria electronic Fraud Forum (NeFF) Mr. Sam Okojere, said this at the second general meeting of the group in Lagos at the weekend.

Speaking on the charges exemption for agency merchants, he said: “For clarity, the processing fees will only be applied on withdrawals above the prescribed thresholds. An example would be if an individual withdraws or deposits a cumulative sum of N600,000 into his/her account or all accounts in a bank in one day, the processing fee to be charge would be three per cent of the N100,000 that was in excess of the prescribed threshold of N500,000, that is N3,000 (for withdrawals) and two per cent of the N100,000, that is N2,000 (for deposits).

“Likewise, if a corporate should make a withdrawal or deposit a cumulative sum of N4,000,000 into its accounts in a bank in one day, the processing fee to be charge would be five per cent of the N1,000,000, that is in excess of the prescribed threshold of N3,000,000, which is N50,000 (for withdrawals) and three per cent of the       N1,000,000, that is N30,000 (for deposits).”

He added: “In addition, there will be no processing fee either under the cashless policy or tax on cash-out done at agent locations in order to encourage financial inclusion in the country.”

Speaking on efforts to secure the payment system in Nigeria, he said: “NeFF is the culmination of an enormous collective effort over the years, with many institutions and individuals contributing towards its development and progress to ensure a safe and more secure payment system in Nigeria.

“As we build on the impressive successes recorded over the years, it is our aspiration to sustain the momentum and set new targets that will further secure the payments system.”

Commenting further on the recent fraud report, he said: “As evidenced by the NIBSS second quarter fraud report of 2019, attempted fraud volume decreased by 47.28 per cent from the first quarter figures, while web, ATM and mobile remain the usual suspects to be used by fraudsters.”

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