CBN Suspends Cash Deposit Charges Till September 2024

The Central Bank of Nigeria (CBN) has directed banks to stop charging customers for cash deposits until September 30, 2024. This decision was communicated in a circular dated May 6, 2024, and signed by Adetona Adedeji, the Director of Banking Supervision at the CBN.

The directive came in response to concerns raised by customers of Deposit Money Banks (DMBs), who reported the imposition of processing fees on cash deposits starting May 1, 2024. According to the new policy, individual customers were to be charged two percent on deposits exceeding N500,000, while corporate account holders faced a three percent charge on deposits exceeding N3 million.

Following the outcry from customers, the CBN intervened, suspending the processing fees as outlined in the circular. The suspension applies to processing fees previously imposed on cash deposits above these thresholds, extending the relief until the end of the third quarter of 2024. Financial institutions have been instructed to accept all cash deposits from the public without imposing any charges until September 30, 2024.

This move by the CBN aims to provide relief to individuals and businesses, encouraging the use of electronic payment channels and reducing reliance on cash transactions.