The Central Bank of Nigeria has issued a new directive to banks, financial institutions, and non-bank financial institutions.
The directive suspends the processing charges that were previously imposed on large cash deposits.
The change is mentioned in the “Guide to Charges by Banks, Other Financial Institutions, and Non-Bank Financial Institutions” dated December 20, 2019 (FPR/DIR/GEN/CIR/07/042).
The suspension applies to deposits over N500,000 for individual accounts and N3,000,000 for corporate accounts.
Previously, these deposits incurred processing fees of 2% and 3%, respectively.
The CBN has immediately halted these charges.
The suspension is a major change in policy and will be in place until April 2024. It is a response to the changing financial situation and the needs of depositors in Nigeria.
The directive requires all financial institutions regulated by the CBN to follow this rule and not charge any fees for cash deposits that meet or exceed certain limits.
The change is expected to encourage larger cash deposits, improve liquidity, and potentially have a positive impact on different sectors, including small and large businesses.
In 2019, the Central Bank of Nigeria (CBN) made an announcement regarding the implementation of charges for customers who make cash deposits and withdrawals from September 19, 2019 onwards. The apex bank shared a circular with the public, stating that this new policy aims to decrease the amount of cash being used.
