In a significant move aimed at easing the financial burden on its citizens, the Central Bank of Nigeria (CBN) has announced a directive for banks to halt the imposition of charges on cash deposits, effective immediately until September 30, 2024. This pivotal decision was revealed in a circular issued on May 6, 2024, underscoring the bank’s commitment to fostering a more inclusive banking environment.
The directive, signed by Adetona Adedeji, the Director of Banking Supervision at the CBN, comes in response to grievances voiced by customers regarding the initiation of processing fees for cash deposits starting May 1. Notably, a circulated email from an affected bank customer brought this issue to light, sparking widespread attention.
Initially, the policy stipulated that individual account holders would incur a 2% charge on deposits exceeding a certain threshold, while corporate entities faced a 2% fee on deposits over N3 million. However, the CBN’s recent circular has put a pause on these charges.
Referencing a previous letter from December 11, 2023, the CBN reiterated the suspension of the processing fees initially outlined in the “Guide to Charges by Banks, Other Financial Institutions and Non-Bank Financial Institutions,” published on December 20, 2019. The suspension is aimed at eliminating the 2% and 3% fees previously levied on cash deposits above the specified thresholds.
By extending this suspension, the CBN has mandated all financial institutions to continue accepting cash deposits from the public sans any processing charges until the specified date in 2024. This move is part of the bank’s broader strategy to encourage savings and ensure that banking services remain accessible to all segments of the population, thereby promoting economic growth and financial inclusivity.
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Last modified: May 8, 2024
