By John Ikani
The Central Bank of Nigeria (CBN) has decided to temporarily halt the processing fees on cash deposits exceeding N500,000 until April 2024.
The decision, communicated through a circular signed by Adetona Adedeji, the acting director of banking supervision at the apex bank, was made public on Monday.
Back on September 18, 2019, the financial regulatory body had implemented a 3 percent charge for processing fees on withdrawals and a 2 percent charge for deposits exceeding N500,000 in individual accounts, aiming to encourage cashless transactions.
In addition, corporate account holders were directed to face a 5 percent processing fee for withdrawals and 3 percent for deposits exceeding N3 million.
Before this policy took effect in 2019, in February 2017, the CBN had initially proposed the re-introduction of charges on substantial cash transactions nationwide.
However, in the recent development on Monday, the regulator has opted to suspend this policy, instructing all banks, financial institutions, and non-bank financial institutions in the country to accept cash deposits without any charges immediately.
“The Central Bank of Nigeria hereby suspends the charging of processing fees of 2% and 3% previously charged on all cash deposits above these thresholds with immediate effect. This suspension shall remain in effect until April 30, 2024,” the circular reads.
“Consequently, all financial institutions regulated by the CBN should accept all cash deposits from the public without any charges going forward.”