‘No more free banking’ – Customers react as Kuda Bank introduces N50 stamp duty

By on July 12, 2022 0

Mixed reactions continue to follow Kuda Microfinance Bank’s decision to introduce a stamp duty of N50 on all deposits of N10,000 and above made to customer accounts.

In a pop-up message to customers via the Kuda app on Monday, the bank said the introduction of the N50 was in compliance with federal stamp duty law.

The bank said the stamp duty deduction is applicable to all wire transfers and would start on July 15, 2022.

“In accordance with the Federal Government Duties Act, we are required by law to apply a N50 fee to all depositors of N10,000 or more paid into your Kuda account,” the message read.

“These fees will apply to the following types of deposits from Friday, July 15, 2022; wire transfer, money added to your account with a debit card and cash deposits made to your account with one of our partner banks.

Emphasizing that the bank earns nothing from the N50 fee, the bank explained that the fee would be remitted to the federal government.

“We don’t gain anything from the charge. All financial institutions have been ordered by the federal government to apply the fee, and we are remitting the entire fee to the government,” the bank explains.

“We will continue to do our best to provide you with free financial services you can rely on, including covering the cost of your first 25 transfers to other banks each month. Please note that the charge will apply from Friday July 15, 2022.”

Reacting to the development, Maxwell Osarenkhoe, a client of Kuda Bank, said the bank had failed to live up to its word as a “freedom bank”, which is its motto and watchword.

“What attracted me to Kuda Bank was the idea of ​​’free fees’ which they sold to me as a customer,” he said.

“To be honest, I appreciated their services, but with these new charges it defeats the purpose of seeking shelter under an MFB. Now there is not much difference with traditional banks.

A Twitter user with the handle @Gifted_kabi said he was disappointed with the development.

“We came to see you because of the free transfers. Now you want to change the format. How can you charge N50 for deposits and withdrawals? Goodbye,” he tweeted.

According to Philip Taiye, founding client of the bank, the identity of the bank was built on the principle of no fees which is one of the reasons why many Nigerians look up to them and what they have to offer.

“I won’t totally blame them since it’s federal government policy, but it will deeply affect their identity because they sold the ‘free charge’ story to attract customers,” he said. declared.

“I will definitely continue to do business with them, at least I still have 25 no transfer fees unlike other banks.”

President Muhammadu Buhari signed the 2020 finance law on December 31, 2020.

The law imposed an electronic money transfer tax of N50 on electronic receipts or the transfer of money of N10,000 and above deposited in a bank or financial institution. The royalty must be paid by the receiver.