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Traditional Banks are Losing Customers to Digital Banks in Nigeria Following the New Stamp Duty Charge By FIRS

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Digital Banks in Nigeria had recorded a new dawn following the new “Stamp Duty” fee charge on every 10,000 Naira transfer by Traditional Banks.

FIRS (Federal Inland Revenue Services) issued a circular in May 2020, where electronic transactions above N10,000 Naira will attract a stamp duty charge of N50.

“Any electronic receipt for, or electronic transfer of, money deposited with any bank or with any banker in any type of account of an amount from N10,000 upwards shall attract a singular or one-off duty of the sum of N50.” –FIRS

“Stamp duty upon receipt (written, printed or in electronic form) for transactions between corporate bodies or between a corporate body and an individual, group or body of individuals, which amounts to N10,000 and above, shall be denoted by payment of N50 per receipt to the service.”

Traditional banks, mostly Access Bank Plc have heavily implemented this policy, collecting “stamp duty charge” from customers’ accounts.

Many traditional bank customers complained of the recent stamp duty charge and their desire to move on with the digital banking revolution.

Now, a good number of them have moved on with creating accounts on Digital Banking platforms to enable them in processing electronic money transfer services with lesser charges. 

Top Digital Banks In Nigeria Includes:

VBank Microfinance

Kuda Bank Microfinance

Carbon 

Paycom 

Read Also: ATM Transactions Drops By 50% With A Corresponding Increase In Fintech Apps Downloads

“Hi, there! you are invited to enjoy free banking on Kuda. Click to Download Kuda here: and join with this code: 3EH1XLI9. You can also sign up on VBank using this code for free: OFBC7

These top digital banks are mostly used in processing electronic money transfer in Nigeria.

This is because it allows unlimited or minimal fee charge on money transfer per day. Some requires minimal fee charge unlike too many charges imposed by traditional banks.

Other online money transfer services that will also allow you to send crypto payments alongside naira includes Bundle Africa— a social payments app allowing you to send and receive funds with friends or individuals using the app.

Bundle is an app that lets you send cash & trade crypto for free. When you sign up here and hold at least 5000 Naira for 30 days you’ll get N500 free 

Digital banks like Kuda will not charge you for bank transfer of up to 25 transactions in a day. Credit and Debit alerts attract no fee charge including zero account maintenance fee.

Read Also: Why Nigeria Banks Should Collaborate With Fintech Including Blockchain Powered Fintech to Revive the Economy

The recent stamp duty charge policy had attracted a very huge backlash from Nigerians and individuals who have little funds in their account. And at the same time is faced with charges.

Diutocoinnews previously reported an increase in Fintech apps download including digital bank apps following the effects of COVID-19 via restrictions imposed on movements.

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