Banks resume levying charges on large deposits following CBN’s suspension conclusion
CBN initially suspended processing fees to alleviate liquidity challenges; banks reinstate charges following suspension expiration on April 30th, 2024
Reports indicate that banks and other financial institutions in Nigeria have resumed levying charges on large deposits from individual and corporate accounts. This action follows the conclusion of the temporary suspension issued by the Central Bank of Nigeria (CBN) on such charges.
In December 2023, the CBN initially directed all commercial banks and non-bank financial institutions to suspend processing fees on large cash deposits and other transactions. This directive, contained in a circular signed by the acting Director of Banking Supervision, Adetona S. Adedeji, aimed to alleviate liquidity challenges in the financial system and mitigate the impact of cash scarcity.
The temporary suspension, effective until April 30th, 2024, was part of the CBN’s measures to stimulate liquidity and encourage bank deposits amid cash shortages experienced in December 2023.
However, with the suspension expiring, banks have reinstated the processing fees, as outlined in the CBN’s previous circular, ‘Guide to Charges by Banks, Other Financial Institutions and Non-Bank Financial Institutions.’
“During this period, you could deposit cash above these thresholds at any Sterling Branch without incurring the usual 2% and 3% processing fees, respectively, for individuals and corporations.
“This is to inform you that effective Wednesday, May 1st, 2024, processing fees have been reintroduced on cash deposits exceeding the thresholds.
“This means when you deposit cash above N500,000 (for individuals) and N3,000,000 (for corporates) at any Sterling Branch, the applicable processing fee of 2% and 3% will be incurred respectively”, the bank said in the circular.
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