Financial inclusion, cashless projects may suffer Banks to blame for parallel market rate rebound CBN to inject to more forex this week
There are concerns over the fate of the nation’s financial inclusion project as the first phase of planned full implementation of the accompanying cash-less projects take full course today.

Although slated for April 1, which falls on the weekend, the full take off of the policy will begin today as financial institutions, markets and all corporate activities resume weekly operations.

As the new phase in the nation’s payments system begins, it is either the stakeholders have understood the rules and play by it or react negatively due to perception, with attendant effects on the overall goal of deepening financial inclusion.

Already, analyst said the move is timely and all about using various alternate channels for transactions aside from cash and has nothing negative to do with financial inclusion.
Meanwhile, the surprised rebound of speculators and the parallel market rates at the weekend, which closed at N394/$, against N375/$ on Wednesday, has been blamed on defiance to rules by some banks.

The development came just as Central Bank of Nigeria (CBN) sustained its dollar intervention in the market for more than five weeks, after it took a new policy direction to liberalise further the foreign exchange market.

According to the schedule of the cash-less policy drive, Lagos, Ogun, Abia, Kano, Anambra, Rivers states and the Federal Capital Territory has taken off.In these states, individuals can only withdraw or deposit money to the tune of N500,000 in a single bank account per day without charges.

This means that any withdrawal above N500,000 to N1 million will attract two per cent charge; between N1 million and N5 million, three per cent; and above N5 million will get 7.5 per cent charge.

On the other, deposits above N500,000 will attract 1.5 per cent charge; between N1 million and N5 million, two per cent; and above N5 million, three per cent.For corporate organisations, only withdrawal and deposit of N3 million will be without charges.

Deposits between N3 million and N10 million will get two per cent charge; above N10 million to N40 million, three per cent; and more than N40 million will be charged five per cent.On the other hand, withdrawals between N3 million and N10 million will be charged five per cent; above N10 million to N40 million, 7.5 per cent; and more than N40 million will be charged 10 per cent.

Meanwhile, the second phase will take off on May 1, comprising Bauchi, Bayelsa, Delta, Enugu, Gombe, Imo, Kaduna, Ondo, Osun and Plateau states.Dispelling the fears of derailing financial inclusion projects, Executive Director, Finance, BGL Captal Limited, Femi Ademola, said the rural mass target in financial inclusion has no N500,000 daily transactions to make.

According to him, those with such amount are already in the financial system and have access to multiple channels of payment, which are free and without limit.“The policy is just about letting people do transactions without physical cash. That is where the world is going. You have chque, Point of Sale, transfers through ATM, mobile phone, Internet banking, even the latest USSD code. These are without charges. There is no discouragement and there is nothing to fear,” he said.

However, a reliable source from the apex bank told The Guardian yesterday that Nigerians are beginning to find out where the real problems are coming from, if banks at this point would have the audacity to tell wicked lies about CBN’s supply of forex to them.

“How can banks refuse to sell forex to retail segment now? How can they prove the claim that there is not enough supply for the retail segment? It is just that they cannot do as it pleases them. But they will hear from us soon,” the source said.

The President of the Association of Bureau De Change Operators of Nigeria (ABCON), Alhaji Aminu Gwadabe, at the weekend, told journalists that banks refused to sell the dollars as directed by the apex bank and lamented the reversed fortune of the naira at N394/$, more than 10 per cent depreciation. “CBN’s knack for last minute solution in recent times is the reason for the misfortune of the naira at the foreign exchange market.

“It is evident that the injection of liquidity to the interbank market rather than the BDC sub-sector is not effective and transparent for sustained exchange rate convergence and unification.

“About 20 banks get $80 million weekly for invisible transactions, while $20 million weekly is shared among 3000 CBN licensed BDCs nationwide. The banks will not help in this matter and transparency cannot be assured,” he said.

CBN, in a statement at the weekend, laid credence to Gwadabe’s claim, when it confirmed the worrisome development that some customers seeking to buy forex for business/personal travel allowances, medical and school fees are being frustrated by some banks with the false claim that the CBN is not allocating enough forex to them.

While the apex bank refuted the insinuations, which held down the free flow of forex in the liberalised retail segment of the market, it now urged any customer not attended to within 24 hours for BTA/PTA or 48 hours for tuition and medical fees to call 07002255226 or send an email to cpd@cbn.gov.ng, with the name and branch of the non-cooperating bank.

He warned commercial banks and other dealers to desist from sabotaging the efforts aimed at making life easier for foreign exchange end users.Similarly, there are strong indications that CBN is set to inject more fund into the foreign exchange market with a view to ensuring liquidity in the interbank market and crashing the parallel market rate.

This is in addition to the planned increase in sale volume to the bureau de change operators from $8,000 to $10,000 dollars per week. The move by the apex bank seems to be returning calm among traders against earlier apprehension over the ability of the CBN to sustain the intervention.

Source :http://t.guardian.ng/business-services/money/anxiety-as-withdrawal-deposit-charges-begin/

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.....sitting and watching in HD

Useless Administration with useless policies..

Read through and its okay by me since the bank Charges doesn't concern me . Even with this policy some bank managers will still do some underground work.


For anyone trying to withdraw or deposit more than 500k will have to do it in installments naw

Great policy, good timing but poor implementation.

In a country with such level of illiteracy, there should be enough public sensitization to avoid this kind of panic.

Pls what's the implications of this Act now?
Meanwhile


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you will be charged again for depositing money...lol...

ifyan:
"You have cheque, Point of Sale, transfers through ATM, mobile phone, Internet banking, even the latest USSD code. These are without charges. There is no discouragement and there is nothing to fear,” he said."

Mr. CBN, banks charges #100 - #105 when making transfers and #65 for making withdrawals through the ATM

ifyan:
"[b]“How can banks refuse to sell forex to retail segment now? How can they prove the claim that there is not enough supply for the retail segment? It is just that they cannot do as it pleases them. But they will hear from us soon,” the source said"

Mr. CBN, banks are the worst financial institution ever existed and maybe they have their own hidden policies you don't know about Mr. CBN. Most banking institutions needs a complete overhaul. Anyway, kudos Mr. CBN

Mr. CBN Sir, abeg you fit reduce the percentage to like 0.5% that's for transaction above 500k. Cos awhole #7,500 when una go comot from person account. Atleast with that #7,500 I fit take cook food wey go last person for 2weeks. That charges too much na Mr. CBN and na recession we dey mbok

Wow

NextGovernor:
Useless Administration with useless policies..

Well....most poor people in this country do not deposit N500000 in their accounts every day sir.

individuals can only withdraw or deposit money to the tune of N500,000 in a single bank account per day without charges.

This means that any withdrawal above N500,000 to N1 million will attract two per cent charge; between N1 million and N5 million, three per cent; and above N5 million will get 7.5 per cent charge.

On the other, deposits above N500,000 will attract 1.5 per cent charge; between N1 million and N5 million, two per cent; and above N5 million, three per cent.For corporate organisations, only withdrawal and deposit of N3 million will be without charges.

Deposits between N3 million and N10 million will get two per cent charge; above N10 million to N40 million, three per cent; and more than N40 million will be charged five per cent.On the other hand, withdrawals between N3 million and N10 million will be charged five per cent; above N10 million to N40 million, 7.5 per cent; and more than N40 million will be charged 10 per cent.

In other words, sir , it is targetting the rich, instead of the poor.

And we do have to raise money for the exchequer, you know...now that oil has fallen.

Useless policy again?

Here in edo, we still have to wait till August 1st .
From now till then, the raw cash is still flying around.



Business men will now embrace e-banking by fire, by force

Nonsense policy.

over tax everywhere . where is the money even going to sef .. we don surfer for this country .

Cashless is really the way to go! Only about 10% if not less of Nigerians will be affected by the policy.

one of the consequences of voting in a 5% government

irresponsible administration , stealing from its masses in the name of rates and taxes

nawa

undefeated:
irresponsible administration , stealing from its masses in the name of rates and taxes

2019 is around the corner, I just tired for this stupid banks

koladebrainiac:
over tax everywhere . where is the money even going to sef .. we don surfer for this country .

The only people taxed here are those who can make a daily deposit of N500000 a day and above....which, excludes about 80% of Nigerians...if not 90%

The rich are being taxed, not the poor masses, so to speak.

And we need the money to....you know...pay salaries, fund contracts, etc...

undefeated:
irresponsible administration , stealing from its masses in the name of rates and taxes

90% of the masses cannot afford to make N500000 daily deposits or withdrawals from their account.

This is a tax on the rich....those who can afford to pay such rates...not the majoirty poor.

Nope ... All they want to clear off is Middle class and that class is the majority in this con3

Oluwa o

It should be on withdrawal not deposit,some people are dealing with lot of cash

best is for everyone to go litrate and do internet banking. Its even safer.

dannytoe:
one of the consequences of voting in a 5% government

individuals can only withdraw or deposit money to the tune of N500,000 in a single bank account per day without charges.

This means that any withdrawal above N500,000 to N1 million will attract two per cent charge; between N1 million and N5 million, three per cent; and above N5 million will get 7.5 per cent charge.

On the other, deposits above N500,000 will attract 1.5 per cent charge; between N1 million and N5 million, two per cent; and above N5 million, three per cent.For corporate organisations, only withdrawal and deposit of N3 million will be without charges.

Deposits between N3 million and N10 million will get two per cent charge; above N10 million to N40 million, three per cent; and more than N40 million will be charged five per cent.On the other hand, withdrawals between N3 million and N10 million will be charged five per cent; above N10 million to N40 million, 7.5 per cent; and more than N40 million will be charged 10 per cent.

Some of you people do not take time to read the article.

You people say that most Nigerians are suffering under Buhari's admin...then at the sign of a tax rate that is clearly targetted at the rich...not the poor...you people accuse PMB of making the masses suffer.

At least 90% of Nigerians won't be affected by this rate....unless you want to start telling me that poor Nigerians have a monthly income of N1million and above.