Business Post Contributor
By Bliss Okperan
The Central Bank of Nigeria (CBN) has directed all deposit money banks (DMBs), other financial institutions and non-bank financial institutions to suspend taking the processing fees from customers for large cash deposits.
The central bank gave this directive via a circular dated Monday, December 11, 2023, signed by its Acting Director of Banking Supervision, Adetona Adedeji.
The CBN, under its former chief, Mr Godwin Emefiele, introduced charges on large cash deposits in a bid to discourage the use of cash and embrace cashless through digital money transfers.
But the current Governor of the central bank, Mr Yemi Cardoso, is reversing this, asking banks to discontinue the policy.
In the disclosure today, the apex bank said individual customers would no longer be required to pay 2 per cent of any cash deposits from N500,000 and above, and 3 per cent on deposits above N3 million.
It said these processing fees of 2 per cent and 3 per cent previously charged on all cash deposits above the thresholds should stop with immediate effect until April 2024.
“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 Non-Bank 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 per cent and 3 per cent 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,” the notice said.
