CBN extends suspension of cash deposit fees

The Central Bank of Nigeria (CBN) on Friday announced the extension of the suspension of cash deposit processing fees in a move aimed at providing respite to Nigerians grappling with economic stress.

The CBN disclosed this in a letter to banks and other financial institutions in the country signed by the Director of Banking Supervision, Adetona Adedeji, on Friday in Abuja.

It also directed the suspension of cash deposits exceeding N500,000 for individuals and N3m for corporate accounts.

The CBN in May announced the suspension of cash deposit processing fees until September 30.

This extension is to ensure that savers do not incur additional costs when making large cash deposits.

Prior to this directive, the processing fee for individual accounts was two percent of the amount, while for corporate accounts it was three percent of the amount.

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The letter read, “Further to our letter dated 6 May 2024, referring to BSD/DIR/PUB/LAB/016/023, the Central Bank of Nigeria hereby extends the suspension of cash deposit processing fees above N500,000 for individuals and N3,000,000 for corporation. The previous suspension which was due to end on September 30, 2024 has now been extended until March 31, 2025.”

“This suspension relates to the two percent and three percent fees outlined in the ‘Guide to Fees by banks, other financial institutions and non-bank financial institutions’ published on December 20, 2019.”

This decision was taken amid increasing concerns about the impact of costs on individuals and businesses, especially in the face of rising inflation and other economic challenges.

Before the suspension, banks and other financial institutions charged processing fees of two percent for individual accounts and three percent for corporate accounts on large cash deposits. These fees have been a source of discontent among many Nigerians, who argue that they are unfair and disproportionately impact those with limited access to electronic banking services.

The CBN’s decision to extend the suspension of processing fees is a testament to its commitment to supporting the Nigerian economy and protecting the interests of its citizens. By waiving these fees, CBN helps reduce the financial burden on individuals and businesses, so they can focus on other priorities.

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