CBN extends suspension of processing fees on large cash deposits to September 2024

In a notable policy update, the Central Bank of Nigeria (CBN) has extended the suspension of processing fees on significant cash deposits until September 30, 2024.

This decision impacts cash deposits exceeding ₦500,000 for individuals and ₦3,000,000 for corporations, which were initially subject to fees of 2% and 3% respectively.

The extension, outlined in a letter from the CBN’s Acting Director of Banking Supervision, Dr. Adetona S. Adedeji, dated May 6, 2024, follows a previous directive that had temporarily halted these charges.

The initial suspension, as reported by Nairametrics on December 11, 2023, was a relief to depositors handling large sums, aiming to promote financial inclusion and ease the burden on large transactions.

Nairametrics reported that banks were poised to resume processing charges as the initial suspension period neared its end.

However, the CBN’s latest directive extends this relief, ensuring that depositors will not incur additional costs when making substantial cash deposits for an extended period.

The directive read in part

“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.

Consequently, all financial institutions regulated by the CBN should continue to accept all cash deposits from the public without any charges until September 30, 2024.”