The Central Bank of Nigeria (CBN) has announced the suspension of processing fees on cash deposits above N500,000. This move aims to provide temporary relief to bank customers and ease cash-related challenges. The suspension of processing fees is applicable to both individuals and corporates.
The circular, issued to all banks, financial institutions, and non-bank financial institutions, states that the suspension will be in effect until April 30, 2024. The decision comes as a welcome development for Nigerians who have been facing processing fees of 3% on cash withdrawals and 2% for deposits exceeding N500,000 since September 18, 2019.
The CBN’s directive mandates all financial institutions regulated by the central bank to accept cash deposits from the public without imposing any charges during the specified period. This move is expected to ease the financial burden on individuals and businesses, especially those operating in the informal sector heavily reliant on cash transactions.
The suspension of processing fees is likely to encourage increased economic activity by facilitating smoother cash transactions, providing relief to bank customers and promoting financial inclusivity.
