In a notable policy update, the Central Bank of Nigeria (CBN) has extended the suspension of processing fees on significant cash deposits until September 30, 2024.
This decision impacts cash deposits exceeding ₦500,000 for individuals and ₦3,000,000 for corporations, which were initially subject to fees of 2% and 3% respectively.
The extension, outlined in a letter from the CBN’s Acting Director of Banking Supervision, Dr. Adetona S. Adedeji, dated May 6, 2024, follows a previous directive that had temporarily halted these charges.
The initial suspension, as reported by Nairametrics on December 11, 2023, was a relief to depositors handling large sums, aiming to promote financial inclusion and ease the burden on large transactions.
Nairametrics reported that banks were poised to resume processing charges as the initial suspension period neared its end.
However, the CBN’s latest directive extends this relief, ensuring that depositors will not incur additional costs when making substantial cash deposits for an extended period.
The directive read in part
“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.
Consequently, all financial institutions regulated by the CBN should continue to accept all cash deposits from the public without any charges until September 30, 2024.”
Flashback
Recall in 2019 the Central Bank of Nigeria (CBN) announced that it would begin to charge bank customers making cash deposits and withdrawals from today, September 19, 2019.
- In a circular made available to the public, the apex bank disclosed that the new policy of transaction fees was designed to reduce cash in use.
- The charges, according to the Central Bank, would attract 3% processing fees for withdrawals and 2% processing fees for lodgments of amounts above N500,000 for individual accounts.
- CBN also made known that 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, just over a year ago, the CBN announced a new policy that mandates deposit money banks and other financial institutions to ensure that over-the-counter cash withdrawals by individuals and corporate entities do not exceed N100,000 and N500,000, respectively, per week.
Nairametrics recently reported that currency outside banks has surged in the month of March 2024 as Nigerians keep 94% cash in hand. An analysis of the latest money and credit statistics data from the CBN showed that while currency in circulation was N3.87 trillion, currency outside banks was N3.63 trillion.
