The Central Bank of Nigeria has recently issued a new directive to instruct all banks, financial institutions, and non-bank financial institutions to suspend the processing charges that were previously levied on substantial cash deposits.
This alteration is explicitly outlined in the “Guide to Charges by Banks, Other Financial Institutions, and Non-Bank Financial Institutions,” dated December 20, 2019 (FPR/DIR/GEN/CIR/07/042). The amendment applies to deposits exceeding N500,000 for individual accounts and N3,000,000 for corporate accounts, which were previously subject to processing fees of 2% and 3%, respectively.
With immediate effect, the Central Bank of Nigeria has implemented a moratorium on these charges.
This suspension marks a notable departure in policy and is slated to remain in force until the conclusion of April 2024. The initiative is construed as a proactive response to the dynamic shifts in the financial landscape and the requirements of depositors across Nigeria.
The directive explicitly mandates all financial institutions under the regulatory purview of the Central Bank of Nigeria to adhere to this directive, refraining from imposing any charges on cash deposits that meet or surpass the specified thresholds. This development is anticipated to stimulate increased cash deposits, bolster liquidity, and potentially yield positive ramifications across various sectors, including both small and large businesses.
