Banks and other financial institutions across Nigeria have reinstated processing fees on large cash deposits following the expiration of the Central Bank of Nigeria (CBN‘s) temporary suspension.
The suspension, affected deposits exceeding N500,000 for individuals and N5 million for corporate entities, ended on April 30, 2024.
During the suspension period, customers enjoyed a waiver of the usual processing fees of 2% for individuals and 3% for corporates on large deposits.
This initiative was part of a broader regulatory measure aimed at encouraging bank deposits and managing liquidity within the financial system.
According to an email from Sterling Bank announcing the resumption of large deposit charges read:
“We wish to remind you of the temporary suspension of the processing fees on cash deposits above N500,000 for individuals and N3,000,000 for corporates by the Central Bank of Nigeria until Tuesday, April 30th, 2024.
“During this period, you could deposit cash above these thresholds at any Sterling Branch without incurring the usual 2% & 3% processing fees respectively for individuals and corporates.
“This is to inform you that effective Wednesday, May 1st, 2024, processing fees have been reintroduced on cash deposits exceeding the thresholds.
“This means when you deposit cash above N500,000 (for individuals) and N3,000,000 (for corporates) at any Sterling Branch, the applicable processing fee of 2% and 3% will be incurred respectively.”
Another source from Wema Bank Plc, said they were told to inform their customers about the same development, but the processing charges has not officially started. “We were told to inform customers but it has not really take effect, people still paid the sum of N500,000 without processing charges last week.”
Recall that the CBN issued a directive to all banks, other financial institutions, and non-bank financial institutions, suspending the processing charges previously imposed on large cash deposits in December 2023.
This change, referenced under the “Guide to Charges by Banks, Other Financial Institutions, and Non-Bank Financial Institutions” affects deposits over N500,000 for individual accounts and N3,000,000 for corporate accounts.
Earlier in 2019, the CBN announced that it would begin to charge bank customers making cash deposits and withdrawals from September 19, 2019.
In a circular made available to the public, the apex bank disclosed that the new policy of transaction fees was designed to reduce cash in use.
According to recent report, currency outside banks has surged in the month of March 2024 as Nigerians keep 94% cash in hand.
An analysis of the latest money and credit statistics data from the CBN showed that while currency in circulation was N3.87 trillion, currency outside banks was N3.63 trillion.
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