CBN suspends processing fees on large cash deposits

The Central Bank of Nigeria (CBN) has announced the suspension of processing fees on large cash deposits, as revealed in a release by the Acting Director of Supervision, Dr. Adetona Adedeji, on Monday.

This new development, outlined in the “Guide to Charges by Banks, Other Financial Institutions, and Non-Bank Financial Institutions” issued on December 20, 2019 (with reference number FPR/DIR/GEN/CIR/07/042), specifically affects deposits exceeding N500,000 for individual accounts and N3,000,000 for corporate accounts.

The suspension of processing fees is effective until April 30, 2024, according to the CBN’s statement.

In 2019, the CBN had initially declared its intention to impose levies on bank customers making cash deposits and withdrawals as part of its strategy to reduce the prevalence of cash transactions.

For corporate accounts, the CBN specified that Deposits Money Banks (DMBs) would charge a five percent processing fee for withdrawals and a three percent processing fee for lodgments exceeding N3,000,000.

The CBN emphasized that all financial institutions regulated by them should accept cash deposits from the public without any charges moving forward. The directive is aimed at promoting a more seamless and cost-effective cash handling system. The financial institutions are urged to adhere to these guidelines.