CEM REPORT, FINANCE | The Central Bank of Nigeria (CBN) has taken a significant step to encourage cash deposits and promote financial inclusion by suspending the processing fees previously charged on cash deposits above certain thresholds.
In a circular signed by Adetona Adedeji, the acting director of Banking Supervision, the CBN announced that this suspension would remain in effect until April 30, 2024.
The initial imposition of processing charges on cash deposits above N500,000 for individuals and N3,000,000 for corporations was implemented by the bank on December 20, 2019, as outlined in the Guide to Charges by Banks, Other Financial Institutions, and Non-Bank Financial Institutions.
“The Central Bank of Nigeria hereby suspends the charging of processing fees of 2% and 3% previously charged on all cash deposits above these thresholds with immediate effect. This suspension shall remain in effect until April 30, 2024.”
However, the recent circular states that all financial institutions regulated by the CBN must now accept all cash deposits from the public without imposing any charges.
“Consequently, all financial institutions regulated by the CBN should accept all cash deposits from the public without any charges going forward.”
Financial institutions regulated by the CBN must now adjust their policies and systems to comply with the new directive. Customers can now deposit their cash without any charges, providing them with a convenient and cost-effective way to manage their finances.
Economic Implications
This move by the CBN is expected to have a positive impact on the country’s economy, as it will create an enabling environment for individuals and corporations to deposit their funds without incurring additional costs. By eliminating these processing fees, the CBN aims to encourage more cash deposits, especially from those who were previously discouraged by the charges.
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This decision will also contribute to the government’s efforts to promote financial inclusion by making banking services more accessible to all Nigerians.
Comments
The Central Bank of Nigeria’s decision to suspend processing fees on cash deposits above specified thresholds until 2024 is a significant step towards fostering financial inclusion and promoting economic growth. By removing these charges, the CBN aims to encourage more individuals and corporations to deposit their funds, ultimately enhancing the banking landscape in Nigeria.