“No More 3%”: CBN Introduces Crucial Changes to Processing Charges on Large Cash Deposits
- The Central Bank of Nigeria (CBN) has announced the removal of processing charges on large deposits
- The bank said the two and three-percent processing fees placed on deposits of N500,000 and N3 million, respectively, are suspended
- CBN said the new directive will take effect immediately and remain until April 2024
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The Central Bank of Nigeria (CBN) has issued a directive to all commercial banks, financial institutions, and non-banking institutions, suspending the processing fees previously placed on large cash deposits.
The apex bank issued the directive under a new guide issued on Monday, December 11, 2023, under the “Guide to Charges by Banks, Other Financial Institutions, and Non-Financial Institutions.”
Source: UGC
No more processing charges on N500k and N3 million deposits
The new directive affects cash deposits of N500,000 by individuals and N3 million for corporate accounts.
The deposits previously attracted two and three-percent processing fees, respectively.
TheCable reports that the bank said it is halting the charges effective immediately, saying that the new policy will remain in effect until the end of April 2024.
The move is a poignant shift in post-Emefiele-led CBN and is a response to the changing financial landscape in Nigeria.
Analysts laud CBN's move to end cash scarcity
The new order mandates financial institutions to comply by removing charges on cash deposits that meet or exceed the thresholds.
Analysts believe the move is to allow Nigerians to deposit more cash amid reported cash scarcity.
Banker and financial analyst Tony Ijeh said the move would encourage Nigerians to hoard large amounts of cash to send to the banks.
“You know there is a slight cash scarcity, and CBN knows that most of these funds are kept in people’s homes. So, the move is smart to allow people to deposit more cash.”
In 2019, the apex bank announced that it would start charging bank customers making large deposits and withdrawals beginning September 19, 2019.
The circular by the bank disclosed that the new policy was designed to reduce currency in circulation.
CBN sends strong message on naira scarcity as Nigerians battle cash crunch
Legit.ng reported that as Nigerians battle near acute naira scarcity, the Central Bank of Nigeria (CBN) has said there is an adequate supply of currency.
The apex bank gave the assurance following the complaints by bank customers on the scarcity of banknotes at counters, ATMs, PoS, and Bureau de Change (BDCs).
A statement by the bank's Corporate Communications Department said there is no shortage of banknotes, stating there is enough for economic activities in the country.
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Source: Legit.ng
