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 development, outlined under 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 impacts deposits exceeding N500,000 for individual accounts and N3,000,000 for corporate accounts.

The suspension of processing fees is set to remain in effect until April 30, 2024, according to the CBN.

In 2019, the CBN had announced its intention to impose charges on bank customers for cash deposits and withdrawals as part of its strategy to reduce the reliance on physical currency.

For corporate accounts, the Deposits Money Banks were initially set to charge five per cent processing fees for withdrawals and three per cent processing fees for lodgments exceeding N3,000,000. However, with this recent announcement, the CBN instructs all financial institutions regulated by them to accept cash deposits from the public without any charges during the specified period.

Businesses and individuals conducting large cash transactions can now benefit from this temporary suspension of processing fees until April 30, 2024, as communicated by the Central Bank of Nigeria.