The Central Bank of Nigeria (CBN) has suspended charges on cash deposits until September 30, 2024.
This decision was made known in a circular dated May 6, 2024, signed by Adetona Adedeji, CBN’s Director of Banking Supervision, News About Nigeria reports.
Just last month, on May 1, banks resumed collecting processing fees on cash deposits, with individuals being charged 2 percent on deposits above N500,000 and corporate account holders being charged 3 percent on deposits above N3,000,000.
However, with this latest circular, CBN has directed financial institutions to put the charges on hold until the end of the third quarter.
According to the circular, which was addressed to financial institutions and non-financial institutions, CBN referred to its earlier letter dated December 11, 2023, which had suspended processing charges imposed on cash deposits above N500,000 for individuals and N3,000,000 for corporations.
The apex bank has now extended this suspension until September 30, 2024.
“Please refer to our letter dated December 11, 2023, referenced BSD/DIR/PUB/LAB/016/023 on the above subject, suspending processing charges imposed on cash deposits above N500,000 for individuals and N3,000,000 for Corporates as contained in the “Guide to Charges by Banks, Other Financial Institutions, and Non-Bank Financial Institutions” issued on December 20, 2019,” CBN said.
“The Central Bank of Nigeria (CBN), hereby, extends the suspension of the processing fees of 2% and 3% previously charged on all cash deposits above these thresholds until September 30, 2024.”
In essence, this means that financial institutions will continue to accept all cash deposits from the public without any charges until the end of the third quarter.
As part of its efforts to promote digital payments and reduce reliance on physical cash, the CBN announced in 2019 that it would begin imposing fees on bank customers for cash deposits and withdrawals.
