Relief as CBN suspends charges on large cash deposits

From Uche Usim, Abuja 

Relief came the way of bank depositors on Monday as the Central Bank of Nigeria has directed all banks, other financial institutions and non-bank financial institutions, to suspend the processing charges previously imposed on large cash deposits. This change, referenced under the “Guide to Charges by Banks, Other Financial Institutions, and Non-Bank Financial Institutions” dated December 20, 2019 (FPR/DIR/GEN/CIR/07/042), affects deposits over N500,000 for individual accounts and N3,000,000 for corporate accounts. Previously, these deposits attracted processing fees of 2 per cent and 3 per cent respectively.

Effective immediately, the CBN has halted these charges.

Analysts say the suspension was a significant shift in policy and will remain in effect until the end of April 2024. 

The move is seen as a fortification of the new financial landscape the apex bank is creating in place of some of its previous policies.

It is also in response to the yearnings of depositors across Nigeria. The directive mandates all financial institutions regulated by the CBN to comply by not imposing any charges on cash deposits that meet or exceed these thresholds. The development is expected to encourage more significant cash deposits, enhance liquidity that will impact various sectors positively, including small and large businesses.

Experts have argued the move would encourage currency hoarders to release cash kept in their possession due to the processing charges thy are made to pay for transactions.