CBN orders Nigerian banks to suspend cash deposit charges

The Central Bank of Nigeria has ordered banks to stop charges on cash deposits.

The apex bank disclosed this in a May 6, 2024, circular signed by its Director of Banking Supervision, Adetona Adedeji.

The apex bank noted that the suspension will last until September 30, 2024.

The development comes as Nigerian banks charge two per cent on deposits above N500,000 for individuals, while corporate account holders were to be charged two per cent on deposits above N3 million.

However, according to the latest circular to financial and non-financial institutions, CBN said the processing fees have been suspended.

“Please refer to our letter dated December 11, 2023, referenced BSD/DIR/PUB/LAB/016/023 on the above subject, suspending processing charges imposed on cash deposits above N500,000 for individuals and N3,000,000 for corporates as contained in the ‘Guide to Charges by Banks, Other Financial Institutions and Non-Bank Financial Institutions’ issued on December 20, 2019.

“The Central Bank of Nigeria hereby extends the suspension of the processing fees of 2 per cent and 3 per cent previously charged on all cash deposits above these thresholds until September 30, 2024,” the circular reads.

The development comes as money outside the banking system rose by 10.67 per cent to N3.63 trillion in March 2024.

CBN orders Nigerian banks to suspend cash deposit charges