The Central Bank of Nigeria (CBN) has issued a directive ordering banks to halt charges on cash deposits until September 30, 2024.
This decision comes as a relief to customers amid concerns raised about the collection of processing fees for cash deposits by some Deposit Money Banks (DMBs) starting May 1.
In a circular dated May 6, 2024, signed by Adetona Adedeji, the Director of Banking Supervision at CBN, the apex bank suspended the processing fees previously imposed on cash deposits exceeding certain thresholds.
Previously, individuals were to be charged two percent on deposits above N500,000, while corporate account holders faced a two percent charge on deposits above N3 million.
However, in the latest circular addressed to financial institutions and non-financial institutions, CBN announced the suspension of these processing fees.
The circular stated,
“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 hereby extends the suspension of the processing fees of 2 percent and 3 percent previously charged on all cash deposits above these thresholds until September 30, 2024.”
CBN emphasized that financial institutions should continue to accept all cash deposits from the public without any charges until the end of the third quarter.
