CBN orders banks to suspend charges on deposits till September

Until September 30, 2024, banks are unable to charge for cash deposits, according to a directive by the Central Bank of Nigeria.

This was revealed by the top bank in a May 6, 2024, circular that was signed by Adetona Adedeji, director of banking supervision.

Concerns were voiced by clients of a few Deposit Money Banks regarding the banks’ start of charging processing fees for cash deposits on May 1.

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This was seen by our correspondent in an email that one of the bank’s clients shared.

Based on the bank’s move, two per cent was to be charged on deposits above N500,000 for individuals, while corporate account holders were to be charged two per cent on deposits above N3m.

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According to the latest circular to financial institutions and non-financial institutions, CBN said the processing fees have been suspended.

The circular read, “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.

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“The Central Bank of Nigeria 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.”

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.