The Central Bank of Nigeria (CBN) has issued a new directive, causing a ripple effect across banks, financial institutions, and non-bank financial institutions.
The latest move involves the suspension of processing charges previously levied on substantial cash deposits, marking a significant shift in policy.
According to the revised “Guide to Charges by Banks, Other Financial Institutions, and Non-Bank Financial Institutions” dated December 20, 2019 (FPR/DIR/GEN/CIR/07/042), the CBN has temporarily halted the processing fees on deposits exceeding N500,000 for individual accounts and N3,000,000 for corporate accounts.
Previously, these transactions attracted fees of 2% and 3%, respectively.
Effective immediately, this suspension will be in effect until the close of April 2024, as stated in the directive.
The decision is viewed as a responsive measure to the evolving financial landscape and the needs of depositors throughout Nigeria.
The CBN has mandated all financial institutions under its regulation to comply with the directive, refraining from imposing any charges on cash deposits meeting or surpassing the specified thresholds.
This strategic move is anticipated to incentivize more significant cash deposits, fostering increased liquidity in the financial system.
The potential positive impact extends across various sectors, including both small and large businesses.
Source: Nairametrics