Kuda Bank commences N50 stamp duty charge on all deposits above N10,000

By Chisom Nwatu.

Kuda Microfinance Bank has introduced N50 stamp duty on all deposits of N10,000 and above made into a customer’s Kuda account beginning from July 15, 2022.

The bank, which rode into popularity with its slogan as “bank of the free”, announced this on Monday in a pop-up message to its customers via its app, saying the stamp duty deduction, which applies to all electronic transfers, was in line with the federal government’s Stamp Duty Act.

“In line with the federal government’s Stamp 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 kinds of 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,” Kuda Bank said.

It explained that it would gain nothing from the N50 charge but that the charges would be remitted to the federal government’s coffers.

“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,” the bank said.

It promised to do its best to give its customers free financial services that they can rely on, “including covering the cost of your first 25 transfers to other banks every month”