BREAKING: CBN directs banks to suspend charges on individuals, corporate cash deposits

The Central Bank of Nigeria (CBN) on Monday directed all banks, and other financial instructions and non-financial institutions to suspend two per cent and three per cent charges on individuals, and corporate cash deposits.

In December 2019, the apex bank reviewed downwards most charges and fees for banking services in its updated Guide to Charges by Banks, Other Financial, and Non-bank Financial Institutions which took effect from January 1, 2020.

“For individual cash deposits, the rate is two per cent for transactions above N500, 000 while cash withdrawal is three per cent for transactions above N500, 000.

“The rate for corporate cash deposit is three percent for transactions above N3 million while withdrawal is five percent for transactions N3 million,” the apex bank directive said.

The Acting Director of Banking Supervision, CBN, Dr. Adetona Adedeji in a signed letter titled “Re: Processing fees on cash deposits” directed to all banks, other financial institutions, and non-financial institutions,” said the suspension would remain in effect until April 30, 2024.

According to him, “Please recall the processing charges imposed on cash deposits above N500,000 for individuals and N3 million for corporate as contained in the “guide to charges by Banks, Other financial institutions and Non-bank financial institution” issued on December 20 2019 under reference FPR/DIR/GEN//CIR/R/07/042.

“The Central Bank of Nigeria hereby suspends the charging of processing fees of two per cent and three per cent 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 forwards.”