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The Central Bank of Nigeria (CBN) has announced the suspension of processing fees on cash deposits exceeding N500,000, extending this relief measure until April 2024. The decision, communicated through a circular signed by Adetona Adedeji, the acting director of banking supervision at the CBN, marks a temporary reprieve for individuals and businesses.
Initially implemented on September 18, 2019, the CBN introduced a 3% charge on processing fees for withdrawals and a 2% charge for deposits exceeding N500,000 in individual accounts. The move aimed to encourage cashless transactions and reduce reliance on physical currency.
For corporate account holders, the CBN instructed banks to impose a 5% processing fee on withdrawals and a 3% fee on deposits exceeding N3 million.
In the latest development, the CBN has directed all banks, financial institutions, and non-bank financial institutions in the country to accept cash deposits without charges immediately.
The circular states, “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.”
This move signifies a temporary shift in the CBN’s policies, providing a grace period for individuals and businesses dealing with substantial cash transactions. The suspension aims to facilitate smoother financial transactions and alleviate the financial burden associated with processing fees, offering a respite until the specified date in 2024.
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