CBN Suspends Charges On Cash Deposits Over N500,000

The Central Bank of Nigeria (CBN) Complex Abuja

The CBN made this known in a statement on Monday signed by its Acting Director of Supervision, Adetona Adedeji

Large cash deposit processing fees have been suspended by a new directive from the Central Bank of Nigeria to all banks, other financial institutions, and non-bank financial institutions.

The CBN has halted these charges with immediate effect.

This suspension, which represents a major change in policy, will be in place until the end of April 2024. The action is regarded as a reaction to the demands of depositors throughout Nigeria as well as the changing financial environment.

All financial institutions under CBN regulation are required by directive to abide by it, meaning they cannot charge for cash deposits that fall below or above these thresholds. It is anticipated that this development will promote larger cash deposits, improve liquidity, and potentially have a positive effect on a number of sectors, including small and large businesses.

This modification impacts deposits over N500,000 for individual accounts and N3,000,000 for corporate accounts. It 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). Processing fees for these deposits used to be 2% and 3%, respectively