CBN Suspends Charges on Cash Deposits

By Modupe Gbadeyanka

After outrage from citizens, the Central Bank of Nigeria (CBN) has suspended the reintroduction of processing fees on cash deposits of over N500,000 for individual accounts and more than N3 million for corporate accounts.

Recall that on Tuesday, Business Post reported that commercial banks in the country have started to notify their customers of the resumption of charges on cash deposits from May 1, 2024.

Many Nigerians were not happy about the development, raising concerns about the desire of the government to squeeze funds from every means in a bid to increase its earnings.

But in a circular, the apex bank directed Deposit Money Banks (DMBs) to suspend the collection of charges on cash deposits above the threshold till September 30, 2024.

In a notice signed by its Director of Banking Supervision, Adetona Adedeji, the central bank asked for a stay of execution.

It told the banks to continue to accept all cash deposits from the public without any charges till the end of the third quarter.

“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 hereby extends the suspension of the processing fees of 2 per cent and 3 per cent previously charged on all cash deposits above these thresholds until September 30, 2024,” the statement said.