The Central Bank of Nigeria (CBN) has instructed commercial banks to halt the imposition of charges on cash deposits until September. This directive comes as a response to protests from some Deposit Money Banks customers who objected to the resumption of processing fees for cash deposits, which took effect on May 1.
Initially, a processing fee of two per cent was to be levied on deposits exceeding N500,000 for individuals. In comparison, corporate account holders would incur a two per cent charge on deposits exceeding N3 million.
However, in a circular signed by Adetona Adedeji, the Director of Banking Supervision at the CBN, the apex bank mandated the suspension of these charges for the next three months.
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.”
“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.”
The CBN directed financial institutions to continue accepting all cash deposits from the public without imposing any charges until the end of the third quarter.
