The Central Bank of Nigeria (CBN) has announced the immediate suspension of processing fees on large cash deposits.
With this fresh directive, all financial institutions regulated by the CBN will cease to impose any charge on cash deposits that meet or exceed these thresholds.
The apex bank in a circular to dated December 11, 2023 titled ‘Re-Processing Fees on Cash Deposit’ and signed by Ag. Director, Banking Supervision, CBN, Dr. Adetona Adedeji, stated: “Please recall the 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 NonBank Financial institutions’ issued on December 20, 2019, under reference FPR/DIR/GEN/CIR/07/042.
“The Central Bank of Nigeria, hereby, suspends the charging of processing fees of 2% and 3%, previously charged on all cash deposits above these thresholds with immediate effect. This suspension shall remain in effect until April 30, 2024.
“Consequently, all financial institutions regulated by the CBN should accept all cash deposits from the public without any charges going forward.”, it added.
It would be recalled that from September 2019, CBN began to charge bank customers making cash deposits and withdrawals as part of its measures to reduce cash in use.
The charges were 3% processing fees for withdrawals and 2% processing fees for lodgments of amounts above N500,000 for individuals.
For corporate accounts, the Deposits Money Banks (DMBs) would charge 5% processing fees for withdrawals and 3% processing fees for lodgments of amounts above N3,000,000.
Also, in 2022 the apex bank further directed the DMBs that over-the-counter cash withdrawals by individuals should not exceed N100,000 per week while for corporate entities the limit was set at N500,000.
