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Nigeria’s Apex bank suspends charges on deposits till September

This directive serves as a proactive step to address emerging concerns and ensure that banking services remain accessible and affordable for all segments of society.
Nigeria’s apex bank suspends charges on deposits till September Nigeria’s apex bank suspends charges on deposits till September
Nigeria’s apex bank suspends charges on deposits till September

In a recent development, the Central Bank of Nigeria (CBN) has issued a directive to banks, instructing them to cease charges on cash deposits until September 30, 2024.

This decision, communicated through a circular dated May 6, 2024, and signed by Adetona Adedeji, the Director of Banking Supervision at CBN, aims to alleviate concerns raised by customers regarding processing fees for cash deposits that some Deposit Money Banks (DMBs) began implementing as of May 1.

Customers across various DMBs voiced their apprehensions about the sudden imposition of processing fees on cash deposits starting from May 1. These concerns were underscored by an email shared by one of the customers, shedding light on the commencement of collection of processing fees by banks.

Central Bank of Nigeria directs banks to suspend charges on deposits till September
Nigeria’s apex bank suspends charges on deposits till September

Previously, under the bank’s guidelines, individuals were subject to a two percent charge on deposits exceeding N500,000, while corporate account holders faced a two percent charge on deposits surpassing N3 million. However, in response to the prevailing situation, CBN has temporarily suspended these processing fees, as outlined in its latest circular addressed to financial institutions and non-financial institutions.

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The circular stated, “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 continued, “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.”

Central Bank of Nigeria directs banks to suspend charges on deposits till September
Nigeria’s apex bank suspends charges on deposits till September

This directive ensures that financial institutions must accept all cash deposits from the public without any accompanying charges until the specified date, marking the end of the third quarter. This temporary suspension aims to provide relief to customers and promote financial inclusivity during this period.

The decision to suspend cash deposit charges reflects CBN’s commitment to fostering a conducive banking environment that supports economic activities and promotes financial stability. It also aligns with ongoing efforts to enhance customer experience and maintain transparency within the banking sector.

By extending the suspension until September 30, 2024, CBN acknowledges the continued challenges faced by individuals and businesses due to economic uncertainties and seeks to mitigate financial burdens where possible. This measure is expected to benefit a wide range of stakeholders, including customers, banks, and the overall economy.

This directive serves as a proactive step to address emerging concerns and ensure that banking services remain accessible and affordable for all segments of society. It underscores CBN’s responsiveness to market dynamics and its commitment to implementing measures that support economic resilience and growth.

The temporary suspension of cash deposit charges by CBN until September 30, 2024, reflects a strategic decision aimed at fostering financial inclusivity, enhancing customer satisfaction, and bolstering economic stability. This initiative underscores CBN’s role as a proactive regulator committed to implementing policies that promote a robust and inclusive financial ecosystem.

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