Large Cash Deposits No Longer Attract Processing Fees, CBN Directs
The Central Bank of Nigeria (CBN) has issued a new directive to all banks, other financial institutions, and non-bank financial institutions, suspending the processing fees that were previously charged on large cash deposits.
The directive, which was contained in a circular dated December 11, 2023, and signed by the Director of Banking and Payments System Department, Mr. Sam Okojere, stated that the suspension was effective immediately and until further notice.
The circular explained that the suspension was in line with the CBN’s efforts to promote the use of electronic payment channels and reduce the cost of banking services for customers.
The CBN had introduced the processing fees on large cash deposits in 2012, as part of the cashless policy, to discourage the use of physical cash and encourage the adoption of electronic payment systems.
According to the policy, customers who deposit or withdraw cash above N500,000 for individuals and N3 million for corporate bodies, are required to pay a processing fee of 2% and 3% respectively.
However, the CBN said that the suspension of the processing fees was necessitated by the need to support the economic recovery and growth of the country, following the impact of the COVID-19 pandemic.
The CBN urged all banks, other financial institutions, and non-bank financial institutions to comply with the directive and ensure that their customers are not charged any processing fees on large cash deposits.
