According to a recent statement issued by Dr. Adetona Adedeji, the Acting Director of Supervision, the Central Bank of Nigeria (CBN) has declared that processing fees for big cash deposits will be suspended. Deposits of more than N500,000 in individual accounts and more than N3,000,00 in corporate accounts are subject to this major policy shift.
This suspension will remain in place until April 30, 2024, as stated in the “Guide to Charges by Banks, Other Financial Institutions, and Non-Bank Financial Institutions” that was issued on December 20, 2019, with the reference number (FPR/DIR/GEN/CIR/07/042).
The CBN had previously stated its intention to impose fees on bank clients’ cash deposits and withdrawals in 2019, but this decision represents a change in strategy. A larger goal of the bank was to reduce the amount of currency in circulation, and this program was one component of that approach.
Withdrawals from business accounts were originally scheduled to incur a 5% processing fee, while deposits over N3,000,000 would incur a 3% cost, according to the CBN’s original proposal. But this new development means these charges are on hold for now.
All public cash deposits should be accepted by the financial institutions regulated by the CBN without any fees, according to their statement. It is recommended that both clients and financial institutions pay attention to this update and modify their transactions appropriately.