All You Need To Understand About The New CBN Policy On Deposits

This policy came into being because the federal government is trying to discourage carrying huge amount of money around. However, it is unfortunate that Nigerians don’t expect anything good from this government; as such, they tend to find fault in all they do. Fortunately, not all their policies are bad as reported. One of which is this new policy on deposits by the Central Bank of Nigeria.

For clarity purpose; I will try and explain this with a practical example, but before that, it’s important to get some facts right on this new policy.

  1. The charges apply daily and not per -transaction.
  2. You can only deposit up to ₦500,000 daily; after which you will be charged if you exceed N500,000 daily limit.
  3. The 2% CBN Deposit charge will only take effect on deposit made Over-The-Counter (OTC)

For Example…

EarnBase has a total of ₦2,000,000.00 (2 million naira), and I love to deposit it in a Bank today Wednesday, 25 September, 2019.

EarnBase can only deposit ₦500,000.00 (five thousand naira) for that day without him being charged the 2% charges. However, if I deciede to deposit the whole ₦1,000,000.00; then, I will be charged 2% of the total deposit I made for the day.

That means if EarnBase deposits ₦1,000,000.00 and another ₦1,000,000.00 on the same day on two occasions, my total deposit for the day will be summed up and 2% charge deducted from the account.

 That is to say ₦40,000 (Forty thousand naira) only will be deducted from my account for that day for depositing ₦2,000,000.00

Other Things You Need To Know About The New CBN Deposit Policy

If you are a business person; it is important you understated the following. So, you won’t be charged the 2% CBN deposit charge.

  1. Deposit made via POS (Point Of Sale) merchant won’t be charged 2% even it’s more than 500,000
  2. Deposit made by transfer through mobile transfer, won’t be charged 2% even it’s more than 500,000

However, if you must deposit huge amount (500,000 and above) over the counter, and don’t want to incur the 2% deposit charge; then you have to deposit ₦500,000 each day until you pay in the huge amount.

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