The apex bank disclosed this in a May 6, 2024, circular signed Adetona Adedeji, its director of Banking Supervision.

The apex bank noted that the suspension will last until September 30, 2024.

The development comes as Nigerian banks charge two per cent on deposits above N500,000 for individuals, while corporate account holders were to be charged two per cent on deposits above N3 million.

However, according to the latest circular to financial and non-financial institutions, CBN said the processing fees have been suspended.

“Please refer to our letter dated December 11, 2023, referenced BSD/DIR/PUB/LAB/016/023 on the above subject, suspending processing charges imposed on cash deposits above N500,000 for individuals and N3,000,000 for corporates as contained in the ‘Guide to Charges by Banks, Other Financial Institutions and Non-Bank Financial Institutions’ issued on December 20, 2019.

“The Central Bank of Nigeria hereby extends the suspension of the processing fees of 2 per cent and 3 per cent previously charged on all cash deposits above these thresholds until September 30, 2024,” the circular reads.

The development comes as money outside the banking system rose by 10.67 per cent to N3.63 trillion in March 2024.

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This development was announced, Sunday evening, after a meeting with the Bankers’ Committee, which aimed to guide deposit money banks (DMBs) regarding operational changes in the foreign exchange market.

This decision by the CBN has significant implications for the banking public in Nigeria. The previous restriction on cash deposits into domiciliary accounts limited customers’ access to their funds and imposed certain constraints.

What this Removal Means

By lifting this restriction, the CBN is providing customers with greater flexibility and control over their finances.

The move is likely to be welcomed by individuals and businesses that rely on domiciliary accounts for international transactions or to hold foreign currency. It offers them the opportunity to deposit larger sums of money without facing limitations.

This change may also facilitate smoother transactions in the foreign exchange market and encourage increased economic activity.

It is important to note that while the CBN has lifted the restriction on cash deposits, individuals and businesses should consult their respective banks for any specific guidelines or requirements that may be in place regarding the utilization of domiciliary accounts.

The CBN’s decision to lift the restriction on cash deposits into domiciliary accounts signifies a positive development for the banking sector in Nigeria.

It reflects the regulatory authority’s efforts to enhance financial flexibility and promote a more favorable environment for economic activities related to foreign exchange transactions

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