Deposit Money Banks nationwide are set to start exerting charges on cash withdrawals by their customers in excess of set limits.

In June 2014, the Central Bank of Nigeria, while announcing the take-off of the third and final phase of the cashless policy, said charges on withdrawals for both individual and corporate account holders would be suspended in 30 states of the federation till July 1, 2015.

The CBN said the waiver was to allow ample time for the banks to deploy adequate infrastructure needed to support the cashless policy as well as enable additional sensitisation of various bank customers on the merits of the policy.

The roll out exercise followed the successful completion of Phases 1 and 2 of the policy in six pilot states, namely Abia, Anambra, Kano, Ogun and Rivers States, as well as the Federal Capital Territory, Abuja.

Under the cashless policy guidelines, 3 per cent charge would be administered by banks for daily individual cumulative or single cash withdrawals in excess of N500,000, and 5 per cent charge on daily cumulative or single cash withdrawals in excess of N3mn.

In line with the policy roll-out, GTBank, in a statement to all its customers on Thursday, said charges on cash withdrawals above the stipulated daily limits that has been in operation in the six states in the first phase and the Federal Capital Territory (Abuja) would now be effective nationwide, including the previously exempted 30 states of Nigeria.

“For individual account holders, charges will apply when daily cumulative withdrawals and deposits are in excess of N500,000,” the bank statement said.

For corporate account holders, the bank said charges would apply when daily cumulative withdrawals are in excess of N3 million.

The cashless policy, the bank explained, was applicable to all categories of accounts, including collection accounts, namely all sub-accounts linked to the same account holder, to be treated as one account for both corporate and individual accounts.

The bank said the charges will apply so far as they involve cash withdrawals, irrespective of channel, whether over the counter, ATM, and third party cheques cashed over the counter.

“For example, if an individual withdraws N450,000 over the counter, and N150,000 from the ATM on the same day, the total amount withdrawn by the customer is N600,000, the service charge will apply on N100,000 – the amount above the daily free limit of N500,000,” the bank explained.

Exemptions, the bank said, have, however, been granted on lodgments and withdrawals for accounts operated by Embassies, Diplomatic Missions, Multilateral Agencies, Aid Donor Agencies, Ministries, Departments and Agencies of Government (revenue collections only), Microfinance Banks (MFBs) and Primary Mortgage Institutions (PMIs).