The Central Bank of Nigeria (CBN) has extended the suspension of cash deposit processing fees from September 30, 2024 to March 31, 2025.
The CBN disclosed this in a letter to banks and other financial institutions in the country signed by its Director of Banking supervision, Adetona Adedeji where it referenced its previous letter on the suspension of cash deposit processing fees till September 30, 2024.
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According to a letter obtained by Nairametrics, the suspension on cash deposits exceeding N500,000 for individuals and N3 million for corporate accounts. The processing fee for individual accounts is 2% of the amount while that of corporate account is 3% of the amount.
The letter reads, “Further to our letter dated May 6, 2024, referenced BSD/DIR/PUB/LAB/016/023, the Central Bank of Nigeria (CBN) hereby extends the suspension of processing charges on cash deposits above N500,000 for individuals and N3,000,000 for corporates. The previous suspension, set to expire on September 30, 2024, has now been extended until March 31, 2025.”
“This suspension pertains to the 2% and 3% fees outlined in the ‘Guide to Charges by Banks, Other Financial Institutions and Non-Bank Financial Institutions,’ issued on December 20, 2019.”
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The Central Bank of Nigeria stated that all financial institutions under its regulation are required to continue accepting cash deposits from the public without any charges during the specified period.
This decision by the CBN is aimed at promoting financial inclusion and encouraging more people to utilize formal banking channels for their transactions. By waiving these processing fees, the CBN is making it easier for individuals and businesses to access banking services without incurring additional costs.
It is expected that this move will further incentivize people to use electronic payment methods and reduce the reliance on physical cash.
Overall, the extension of the suspension of cash deposit processing fees by the CBN is a positive step towards achieving a more inclusive and efficient financial system in Nigeria. This move will undoubtedly benefit individuals, businesses, and the economy as a whole.