The Central Bank of Nigeria (CBN) has announced the suspension of processing fees on large cash deposits, impacting both individual and corporate accounts.
The directive, outlined in the “Guide to Charges by Banks, Other Financial Institutions, and Non-Bank Financial Institutions” dated December 20, 2019, puts a halt to the 2% and 3% processing charges for individual and corporate accounts, respectively, on deposits exceeding N500,000 and N3,000,000.
Effective immediately, this suspension is scheduled to remain in effect until the end of April 2024, as the CBN responds to the evolving financial landscape and the needs of depositors across Nigeria.
All financial institutions regulated by the CBN are mandated to comply with this directive, fostering an environment that is expected to encourage larger cash deposits, boost liquidity, and potentially have a positive impact on various sectors, including small and large businesses.
Recall in 2019 the Central Bank of Nigeria (CBN) announced that it would begin to charge bank customers making cash deposits and withdrawals from today, September 19, 2019.
The previous policy imposed a 3% processing fee for withdrawals and a 2% processing fee for lodgments exceeding N500,000 for individual accounts.
For corporate accounts, the processing fees were set at 5% for withdrawals and 3% for lodgments exceeding N3,000,000.
Just over a year ago, the CBN had implemented new cash withdrawal limits, restricting over-the-counter withdrawals to N100,000 for individuals and N500,000 for corporate entities per week.
However, as of January 9, 2023, all cash withdrawals exceeding these limits were set to incur processing fees of 5% and 10%, respectively.
