James Emejo in Abuja
The Central Bank of Nigeria (CBN) has announced an extension to the suspension of processing fees of two per cent and three per cent previously imposed on all cash deposits above N500,000 for individuals and N3 million for corporates respectively, with immediate effect.
The central bank said the suspension shall remain in effect until September 30, 2024 from April 30, 2024.
The bank disclosed this in a circular dated May 6, 2024 and signed by CBN acting Director, Banking Supervision, Dr. Adetona Adedeji, which was addressed to all banks, Other Financial Institutions (OFIs) and non-bank financial institutions under the apex bank’s regulatory supervision.
The central bank further ordered the financial institutions under its purview to accept all cash deposits from the public without any charges going forward.
The charges were first suspended in December 2023 amid the cash crunch that hit the banks as customers prefer to keep their money away from the banks partly because of the exorbitant charges on deposits, especially those exceeding the approved threshold following the implementation of the cashless policy.
On December 20, 2019, the central bank introduced the revised “Guide to Charges by Banks, Other Financial Institutions and Non- Bank Financial Institutions”, which had detailed approved charges for banking services.
The document provided a basis for the application of charges on various products and services offered by banks and other regulated institutions under its purview.
The Guide which was first released in 2004, was revised in 2013 and 2017 in the light of market developments, such as innovations in products and/or channels and new industry participants.
The bank pointed out that the charges prescribed in the guide were arrived at after extensive consultations with stakeholders, adding that the intendment of the guide was to enhance flexibility, transparency, and competition in the Nigerian banking industry.
Hence, where a charge is stipulated as “negotiable”, financial institutions are required to draw the attention of customers to their rights to negotiate and the two parties are required to mutually agree on the applicable charge via a verifiable means.
Although the guide provided for charges on various products and services of financial institutions, it is not exhaustive, the central bank noted.
Financial Institutions are required to present any new product, service, or charge not covered by the document to the CBN for prior written approval.
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