CBN Suspends Cash Deposit Processing Fees Amid Cash Scarcity Concerns
By Patience Ikpeme
Amid concerns over cash scarcity in the country, the Central Bank of Nigeria has made a strategic decision to suspend processing fees on cash deposits.
The recent directive, aimed at all banks, financial institutions, and non-bank financial institutions, comes in response to the prevailing challenges faced by individuals and businesses due to the scarcity of physical currency.
Referencing the “Guide to Charges by Banks, Other Financial Institutions and Non-Bank Financial Institutions” issued on December 20, 2019, the CBN has promptly suspended the imposition of charges on cash deposits exceeding N500,000 for individuals and N3,000,000 for corporates. The previously imposed 2% and 3% fees have been waived with immediate effect until April 30, 2024.
Dr. Adetona S. Adedeji, the Acting Director of Banking Supervision, signed the circular informing all financial institutions of the CBN’s decision.
The CBN decision to waive processing fees on deposits highlighted the importance of this measure in alleviating the burden on cash transactions within the current economic climate. All financial institutions regulated by the CBN are expected to comply, allowing the public to deposit cash without encountering additional charges.
This strategic move by the Central Bank of Nigeria is anticipated to address the challenges associated with the shortage of physical cash, providing much-needed relief to businesses and individuals engaging in cash transactions across the nation.
