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Aftermath Of Criticisms, CBN Suspends Charges On Cash Deposits




The apex bank in Nigeria, the Central Bank of Nigeria (CBN) amidst criticisms, has suspended the newly introduced tariff on cash deposits.

Recall that the CBN had recently announced that banks in the country will begin to charge a percent as a cybersecurity levy on every electronic transfer.

The circular announcing the introduction of the fee also noted that it would take effect in two weeks.

However, in another circular dated May 6, 2024, the CBN directed banks to suspend the collection of processing fees on cash deposits until September 30, 2024.

The circular, signed by the Director of Banking Supervision, Adetona Adedeji, was issued in response to concerns raised by bank customers over the collection of processing fees for cash deposits that began on May 1.

Banks were previously required to charge two percent on deposits above NN500,000 for individuals, and two percent on deposits above N3m for corporate account holders.

However, the CBN has now instructed financial and non-financial institutions to suspend these charges until the end of September 2024. This move is expected to ease the financial burden on bank customers and promote cash deposits in the country.

“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,” CBN said.

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

The apex bank directed financial institutions to continue to accept all cash deposits from the public without any charges till the end of the third quarter.

Many had criticised the move by the apex bank describing it as a slap on the masses, especially as it is coming when the country is in a near economic mess.


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