In a mail by the bank to its customers last weekend, Kuda, which operates a digital banking platform, has evoked the Federal Government’s stamp duty act to start charging N50 for all deposits of N10,000 or more made into its customers’ accounts.
However, according to Kuda, the development is applicable to deposits on electronic transfers, money added to accounts with a debit card, and cash deposits made into account at any of its partner banks.
The bank in the mail stated: “In line with the Federal Government’s duty act. We‘re required by law to apply a N50 charge to all depositors of N10,000 or more made into your Kuda account.
“This charge will apply to the following deposits from Friday, July 15, 2022; electronic transfer, money added to your account with a debit card, and cash deposits made into your account at any of our partner banks.”
The digital bank has been unrivaled and attracted many Nigerian customers due to its zero charges per transaction policy.
Recall that on January 15, 2016, the Central Bank of Nigeria (CBN) issued a circular, “Collection and Remittance of Statutory Charges on Receipts to Nigeria Postal Service under the Stamp Duties Act” (the Circular) to all Deposit Money Banks (DMBs) and other Financial Institutions (FIs) in Nigeria.
This initiative was part of the Federal Government’s efforts to boost revenue collection in the non-oil sector following the oil price nosedive and reduction in related oil sector receipts.
Kuda, however, stressed that it gains nothing from the N50 charges as everything would be remitted to the government’s pocket. “We don’t gain anything from the charge.
All financial institutions have been directed by the federal government to apply the charge, and we hand over the entire charge to the government.
“We will continue to do our best to give you free financial services that you can rely on, including covering the cost of your first 25 transfers to other banks every month,” the bank assured its customers.
