- The new directive is coming against the backdrop of growing cash scarcity and empty ATMs across the country
The Central Bank of Nigeria, CBN, has suspended charges on cash deposits above the regulatory limits of N500,000 for individuals and N3,000,000 for corporate account holders.
The new directive is coming against the backdrop of growing cash scarcity and empty ATMs across the country.
Also, the CBN stated that the suspension of the deposit charges will last till April 30 next year.
Recall that from September 2019, CBN began to charge bank customers making cash deposits and withdrawals. It said the objective was 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, CBN directed that over-the-counter cash withdrawals by individuals do not exceed N100,000 per week. For corporate entities the limit was N500,000.
However, CBN has reversed the directive on deposits in a circular to dated December 11, 2023. It was titled, ‘Re-Processing Fees on Cash Deposit’ by Ag. Director, Banking Supervision, CBN, Dr. Adetona Adedeji.
It read: “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.”