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% and 3%, respectively, reports Daily Sun.
Effective immediately, the CBN has halted the charges.
Analysts say the suspension is 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 which demolishes some of the previous policies of the CBN.
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. This development is expected to encourage more significant cash deposits, enhance liquidity, and possibly impact various sectors positively, including small and large businesses.
The move is expected to encourage hoarders to release huge chunks of cash in their possession as the fear of charges made them to withhold huge cash.
