Banking

Cashless Policy: No Going Back on Deposits Charges—CBN

Published

6 years ago

20/09/2019

By Adedapo Adesanya

Despite the recent criticisms that trailed the re-introduction of processing fees on deposits and withdrawals on certain thresholds by individual and corporate bank customers in seven states of the country, the Central Bank of Nigeria (CBN) has said it won’t back down.

The apex bank had directed deposit money banks in the country to begin implementation of this cashless policy from Wednesday, September 18, 2019 and since then, many have lambasted the CBN.

Governor of the central bank, Mr Godwin Emefiele, while briefing journalists at the end of the Monetary Policy Committee (MPC) two-day meeting on Friday in Abuja, said this cashless policy was not new and that since its first introduction in 2012 and withdrawal in 2014, Nigerians had five years to bring their cash into the banking space.

“Fees on excess cash withdrawals are not new and have been in place since July 2012. Deposit fees are also not new.

“They have been in place since inception but later withdrawn in 2014 following feedback on the need for stakeholders to fully embrace electronic payment before implementation

“We believe that after five years and with all the options and channels that are currently available that we need to really embrace the best practices by saying we should go cashless in Nigeria,” the CBN chief said during the briefing monitored by Business Post.

Based on data between 2012 and 2018, Mr Emefiele said the cost of currency management in 2014 reduced by 13 percent following the first introduction of the policy including charges on both deposits and withdrawal in the ‘six cashless states’ throughout 2013.

However, Mr Emefiele disclosed that due to the suspension of the policy on deposit charges in 2014, currency management cost went up from 2015 and increased year-on-year basis to 2018 at an annual rate of 33 percent.

Mr Emefiele further noted that the policy was put in place to encourage the use of electronic means of transaction and reduce but not eliminate cash-based transactions.

“It is in the public’s interest to promote an efficient payment system via the cashless policy which helps to reduce the punitive cost of cash processing passed on to money deposit banks”

He noted that the strategy will help promote an open and transparent system because “Cashless policy also improves transparency in financial dealings and reduction in crime such as advanced fee fraud, graft, ransom fee payment, and extortions.”

He also said that since the pilot of the cashless policy that electronic transactions had increased substantially within the Nigerian economy.

According to Mr Emefiele, “POS transactions increased by 4692 percent and we are talking about N2.27 trillion from just N48.6 billion in 2012 to N2.3 trillion at the end of 2018”

He added that electronic transfers increased significantly by 1967 percent or N76.5 trillion from N3.8 trillion in 2012 to N80.4 trillion in 2018. Cheque transactions had also reduced by 32 percent by about N2.45 billion from 7.48 billion in 2012 to 5.03 billion in 2018.

He then disclosed that financial access funds, ATMs, Agents, and Mobile Cash across each of the six cashless policy states all witnessed exponential growth.

Business Post reports that based on the new policy, individual customers would only be required to pay 2 percent fee on deposits above N500,000 and 3 percent on extra amount above N500,000 when withdrawing.

For corporate customers, they would pay 3 percent on deposits above N3 million and 5 percent on withdrawals above N3 million.

Banking

Fidelity Bank GAIM 6 Promo Produces 20 Additional Millionaires

Published

2 days ago

19/03/2025

Dipo Olowookere

By Aduragbemi Omiyale

No fewer than 20 fresh millionaires have emerged in the Fidelity Bank Plc Get Alert in Millions (GAIM) Season 6 promo.

They winners were picked at the second and third monthly draws of the financial institution held at its corporate headquarters in Lagos recently.

The events were monitored by the representatives of relevant regulatory bodies, including the South-West Zonal Coordinator of the Federal Competition and Consumer Protection Council (FCCPC), Mrs Aboluwade Margaret; and the Principal Legal Officer of the Lagos State Lotteries and Gaming Authority, Oyinkan Kusamotu.

A statement from the lender disclosed that the 20 lucky winners were randomly selected through an electronic draw across Lagos, North, Abuja, South-West, South-South, and South-East zones and would be rewarded with N1 million each.

The Fidelity Bank GAIM campaign was launched in November 2024 and about N19.75 million has been won by 869 customers across different categories.

The GAIM 6 campaign, which will run until August 2025, is set to reward lucky customers with a total of N159 million.

Speaking at the draws, the promo Chairperson and Executive Director for Lagos and South-West, Fidelity Bank, Dr Ken Opara, noted that the GAIM 6 promo was designed to reward customers’ loyalty, encourage a savings culture, and promote financial inclusion across the country.

Dr Opara, represented by the Regional Bank Head for Ikoyi, Chetachi Okechukwu, said, “Fidelity Bank is dedicated to the financial well-being of our customers and this commitment inspired the launch of the GAIM Promo, designed to cultivate a strong culture of savings.

“Through this promo, customers have the chance to win substantial cash prizes up to N10 million by saving and transacting with their Fidelity Bank Savings accounts.

“In addition to the monetary rewards, winners will receive complimentary financial advisory services to secure and grow their wealth for the future.”

Fidelity Bank, ranked among the best banks in Nigeria, is a full-fledged Commercial Deposit Money Bank serving over 8.5 million customers through digital banking channels, its 255 business offices in Nigeria and United Kingdom subsidiary, FidBank UK Limited.

Banking

Rand Merchant Bank Adopts Kachasi to Strengthen Trade Finance Operations

Published

4 days ago

17/03/2025

Modupe Gbadeyanka

By Modupe Gbadeyanka

As part of its commitment to deliver quality service to customers, Rand Merchant Bank (RMB) has finally embraced the trade finance software of Union Systems Limited (USL), Kachasi.

The lender said its migration from Finastra’s Trade Innovation (TI) to USL’s Kachasi is a testament to the strength, reliability and competitiveness of this homegrown solution.

Kachasi is Nigeria’s leading indigenous trade finance software built to empower banks with seamless automation, regulatory compliance, and enhanced operational efficiency.

The platform has consistently proven to be a game-changer in the trade finance sector, offering key features such as full compliance with statutory and local regulatory requirements, end-to-end automation of trade finance processes, compliance with international trade regulations, advanced risk management and reporting tools, as well as seamless integration with core banking, local portals and third-party systems.

RMB said its decision to integrate Kachasi into its operations reinforces the platform’s reputation as a trusted trade finance solution.

As international trade becomes more complex, financial institutions require cutting-edge technology to navigate regulatory requirements, mitigate risks, and ensure operational excellence.

“This win affirms our commitment to revolutionizing trade finance automation across Africa. As more financial institutions embrace Kachasi, we remain dedicated to delivering cutting-edge solutions that drive efficiency and elevate the banking sector,” the financial institution stated.

Also, the chief executive of USL, Mr Chuks Onyebuchi, said, “This partnership with Rand Merchant Bank marks a defining moment, not just for Union Systems Limited but for African-built fintech solutions on the global stage.

“The successful transition from Finastra’s Trade Innovation (TI) to Kachasi proves that our homegrown technology is not only competitive but also better suited to the evolving needs of banks and trade finance institutions.

“Kachasi’s seamless automation, deep integration capabilities, and understanding of the local and international trade landscape make it the ideal choice for financial institutions looking to drive efficiency and innovation. This achievement is a testament to our commitment to building world-class technology, and we are excited to support RMB in revolutionizing their trade finance operations.”

Banking

TAJBank to Raise N20bn Mudarabah Sukuk to Fuel Business Expansion

Published

4 days ago

17/03/2025

Adedapo Adesanya

By Adedapo Adesanya

Nigerian non-interest bank, TAJBank, is finalising arrangements to raise the sum of N20 billion Mudarabah Sukuk to beef up its additional tier 1 capital with the aim of fueling its business expansion drive in the country.

The issuance is part of its larger N100 billion Sukuk programme.

The new investment initiative, which is coming two years after the issuance of the first-ever N10 billion Sukuk on the Nigerian Exchange (NGX) Limited in 2023, presents a unique opportunity for individuals and institutions to invest in an ethical instrument with a competitive 20.5 per cent per annum return.

The Mudarabah Sukuk, which is open to all investors, is designed to offer a stable and ethical investment option, allowing investors to participate in the bank’s profit-sharing ventures.

According to a statement, the the move underscores its commitment to expand access to innovative financial solutions and promoting financial inclusion in the country.

The Mudarabah Sukuk issuance terms and conditions are undergoing final regulatory assessment and approval processes.

The chief executive of TAJBank, Mr Hamid Joda, said, “We are excited to bring this Mudarabah Sukuk to the market, offering a compelling investment opportunity that aligns with ethical financial principles.”

“This listing on the NGX will enable a wider range of investors to participate in our growth and benefit from our profit-sharing model”, the banker added.

Mr Joda had, at the beating of the gong during the listing of the TAJBank’s maiden N10 billion Sukuk bond on the NGX in February 2023, assured investors that the bank’s board and management would ensure good returns on their investments.

Business Post reports that the bond was over-subscribed by over 115 per cent.

“As TAJBank gets the NGX’s endorsement today on its fund raising for operations, I want to assure all investors in the maiden Sukuk bond offer by our bank that the board and management will surpass their expectations in terms of return on their investment and other benefits,” he said.