Kuda is no longer bank of the free! This is because it has started charging N50 naira for every deposit of N10,000 and above that all its customers receive into all Kuda accounts.
This is the position of its customers who are disgruntled over the commencement of the charges.
The digital bank has drawn the ire of its customers following the commencement of the N50 naira charges.
Consequently, its customers stormed the social media to register their dissatisfaction over the introduction and commencement of charges by Kuda.
But why did Kuda suddenly begin to charge customers? Well, here is why.
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Why Kuda is charging N50 on all deposits of N10,000 and above:
In an email to all its customers, Kuda said the charges are in line with the Nigerian Federal Government’s Stamp Duty act.
It said the federal government has made it mandatory that stamp duty be charged on all electronic transfers.
The digital bank said it is, therefore, required by law to collect the charges.
“In line with the Federal Government’s Stamp Duty Act, we’re required by law to apply a 50 naira charge to all deposits of 10,000 Naira or more made into your Kuda account,” the bank’s email to customers read.
Furthermore, Kuda said that the charge will apply to “electronic transfers, money added to your account with a debit card and cash deposits made into your account at any of our partner banks.”
Meanwhile, Kuda swiftly clarified that the N50 naira stamp duty charges that it has begun collecting does not enter its pockets.
It said the revenue it collects from the charges will all go to the federal government.
So, according to Kuda, it does not gain any kobo from the charges as it remits all the revenue it collects from customers to government coffers.
“No, 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.”
Keep in mind that on the 15th of January 2016, the Central Bank of Nigeria (CBN) issued a circular about stamp duty collection.
It read, “Collection and Remittance of Statutory Charges on Receipts to Nigeria Postal Service under the Stamp Duties Act.”
It sent the circular to all Deposit Money Banks (DMBs) and other Financial Institutions (FIs) in the country, mandating them to collect stamp duty on transfers.
Nevertheless, in a bid to maintain a free service stance, the digital bank promised its customers free financial services that covers cost of first 25 transfers to other banks every month.
“We’ll 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.
Kuda As Bank Of The Free?
The Nigerian digital bank, Kuda, kicked off as the bank of the free.
A digital-only bank operating in Nigeria since 2017.
Launching into the Nigerian financial space, Kuda saw the pains of Nigerians who have constantly been short-changed by traditional banks through numerous and unmerited charges.
On its platform, Kuda touted itself as “bank of the free.”
It also noted that “We’re here to help you get the best out of your money, no strings attached.”
The digital bank also said in another part of the portal, that “We’re serious about free banking, and we will never, ever charge you for anything without your consent.”
It went ahead to onboard customers on its website with an emphatic note, “Welcome to your freedom!”
However, the recent turnaround to charge customers puts the welcome note into scrutiny; So, “how market with the supposed ‘Freedom?'”
Well, you could argue that you did not give Kuda your “CONSENT” to deduct N50 charges from your account deposits.
However, the Kuda bank can equally argue that it notified you via email and so, sought your consent.
In this case, then parties car go ahead to debate on whether or not the consent was given.
However, should this be case, then the question of who made the decision will come into fore.
Is it Kuda bank that made the decision to charge N50 stamp duty or is it the federal government?
I leave you with that conclusion anyways.
However, the continued stance of being the bank of the free is, understandably, questionable right now.
This is because, despite still brandishing on its portal for being bank of the free, some customers disagree.
Evidence abound on social media and a look at some of the comments will suffice.
From bank of the free to bank of the fee
— Indispensable David ➐ (@davidchibike) July 12, 2022
Kuda Bank wey promise to stand by me don go sit down.
— Sheddy King 🌍 (@thesheddyking) July 12, 2022
Kuda is the bank of the Free but the R is silent now.
— Attah Akor (@attah_akor) July 12, 2022
Kuda: we will debit ₦50 From every ₦10k transaction
Me: deposite ₦5k twice…
Kuda: pic.twitter.com/5WFzeUfkrF
— Okeowo (@emeritus3310) July 12, 2022
Kuda has finally added bank charges…..who kuda’ve thought.
— Miss.ayo.artss✭ (@madamayo_) July 12, 2022
Apparently FG is at it again..
Them don collect the only free thing for this country like this— Attah Akor (@attah_akor) July 12, 2022
Kuda doesn’t collect the charges. Its your fed govt. they collected from my access bank already
— Vikhari (@vikhariiz) July 12, 2022
How is this Kuda’s fault. Your government taking from the masses rather. pic.twitter.com/yA3vPU9zYx
— Ladozfa (@ladozfa) July 13, 2022
What’s this now @kudabank , I thought you agreed on being the bank of the free 🥺😭and na me wey them send money them go now debit 50 naira. Issokay🥲 pic.twitter.com/7yi1YLAWso
— Barbina🍭🍭 (@canddyboss) July 12, 2022
hard to fault customers when kuda’s entire customer acquisition strategy was centered around the idea that they wouldn’t charge said fees.
— Ezra ‘God’ Olubi (@0x) July 14, 2022
On the platform, Kuda also advertises to customers saying thus:
“Save it, spend it, send it. It’s up to you. Whatever you choose to do with your money, we’ll make sure it’s done better and free of charge. We take responsibility for that.”
That’s very correct. The digital bank said it would take RESPONSIBILITY in ensuring that you alone decides what happens with your money.
So, this claim becomes baseless when, without your consent, N50 is deducted from your account just because you received N10,000.
However, Kuda is not to blame. Rather, the Federal Government of Nigeria should fully take the blame.
Or don’t you think so?
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