The Central Bank of Nigeria (CBN) has directed deposit money banks and financial institutions to suspend processing fee on deposits till September 30, 2024.
This was contained in a circular dated May 6, 2024, and issued by the apex bank’s Acting Director of Banking Supervision, Adetona Adedeji.
The financial institutions suspend processing charges imposed on cash deposits above N500,000 for individuals and N3,000,000 for corporates.
The fresh directive came at a time the CBN instructed deposit money banks to start charging 0.5% cybersecurity levy on transactions, a development that has sparked outrage.
The circular read, “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% 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,” the circular read.
What it means for customers and banks
The CBN’s significant step to suspend charges on cash deposits aims to alleviate some of the financial burdens faced by individuals and corporate account holders.
The decision to suspend these charges comes amidst growing concerns about cash scarcity and empty ATMs across the country, coupled with the introduction of a cybersecurity levy.
Immediate past CBN governor, Godwin Emefiele, had initially implemented the cash deposit limits to curb cases of money laundering and other illegal financial transactions.
By temporarily lifting these charges, the CBN aims to provide relief to customers and encourage more transactions.
Customers will benefit from having a larger amount of disposable income available for saving and spending. While for banks on the other hand, the suspension represents a loss in revenue from deposit fees.
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