The Central Bank of Nigeria (CBN) on Monday directed all banks, other financial institutions, and non-financial institutions to suspend two percent charges on N500,000 cash deposits by customers.
The apex banks in the circular directed all banks to also suspend three per charges on N3 million corporate cash deposits.
In December 2019, the apex bank reviewed downward most charges for banking services in its updated Guide to Charges by Banks, Other Financial, and Non-bank Financial Institutions which took effect from January 1, 2020.
“For individual cash deposits, the rate is two percent for transactions above N500,000 while cash withdrawal is three percent for transactions above N500,000.
“The rate for corporate cash deposit is three percent for transactions above N3 million while withdrawal is five percent for transactions above N3 million,” the apex bank directive said.
The Acting Director of Banking Supervision, CBN, Adetona Adedeji in a signed letter titled “Letter to all banks, other financial institutions and non-financial institutions,” said the suspension would remain in effect until April 30, 2024.
According to him, “Please recall the processing charges imposed on cash deposits above N500,000 for individuals and N3,000,000 for corporate as contained in the “guide to charges by Banks, Other financial institutions and Non-bank financial institutions” issued on December 20 2019 under reference FPR/DIR/GEN//CIR/R/07/042.
“The Central Bank of Nigeria hereby suspends the charging of processing fees of two percent and three percent previously charged on all cash deposits above these thresholds with immediate effect. This suspension shall remain in effect until April 30, 2024.
“Consequently, all financial institutions regulated by the CBN should accept all cash deposits from the public without any charges going forward.”
Analysts have expressed that CBN is reacting to the scarcity of local currency in the banking industry.
Customers are withdrawing unusually large volumes of cash from banks and depositing less, raising fears in financial circles.
A daily newspaper report of a customer survey at the weekend showed that complaints by customers over the scarcity of naira notes continued, with queues diverting from less dispensing Automated Teller Machines (ATMs) to banking halls for over-the-counter withdrawals.
However, the CBN has insisted that there is enough currency in circulation to meet all demands. It also cautioned against panic withdrawals.
Several customers had complained of inadequate cash at ATMs, Points of Sale (PoS), Bureaux de Change (BDCs), and in banking halls. Some officials of banks had in turn claimed they were not getting adequate cash supply to meet customers’ immediate cash needs.
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