CBN suspends cash deposit processing charges until Sept 2024

By Temi Olowu

The Central Bank of Nigeria (CBN) has announced the suspension of charges on cash deposits until September 30, 2024, providing relief for bank customers across the country.

The regulatory bank confirmed the temporary halt on processing fees for cash deposits in a circular dated May 6, 2024 and signed by the Director of Banking Supervision at the CBN, Adetona Adedeji.

This move comes as a reversal of the recent reinstatement of processing fees on May 1, which saw banks resuming the collection of charges for certain deposit transactions.

On Monday, First Bank, one of Nigeria’s leading financial institutions, had in an email to customer announced the reintroduction of processing fees on cash deposits by customers, effective May 1, 2024.

The lender said the decision to reintroduce cash processing fees aligns with regulatory requirements set forth by the CBN.

Customers are expected to pay two percent charge on cash deposits exceeding N500,000, while corporate account holders were subject to a 3 percent fee on deposits above N3,000,000.

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In the latest circular addressed to financial institutions and non-financial institutions, the CBN cited its December 11, 2023, directive which suspended processing charges on cash deposits exceeding specific thresholds.

“The Central Bank of Nigeria (CBN) hereby extends the suspension of the processing fees of 2% and 3% previously charged on all cash deposits above these thresholds until September 30, 2024,” stated the CBN.

This decision aims to alleviate financial burdens on individuals and businesses, offering a temporary reprieve from additional charges on cash deposits.

The suspension may have brought relief to millions of bank customers who just on Monday received news of the CBN introduction of cybercrime fees on electronic banking transactions.

A circular from the CBN on Monday directed financial institutions to implement a 0.005 percent Cybersecurity Levy on electronic transfers.

The circular, issued by Director of Payment Services, Uzoma Efobi, specifies that the levy will be applied at the transaction origination and pooled into the Cybersecurity Fund held by the CBN.