Some of the major banks have stopped the collection of processing fees on deposits in line with the Central Bank of Nigeria’s directive on the suspension.
The CBN on Wednesday announced in a circular the suspension of the collection of processing fees on deposits to September 30, 2024.
This followed the initial activation of the collection of processing fees on deposits by banks. A two per cent processing fee applicable to deposits above N500,000 for individual accounts and three per cent on deposits of more than N3 million for corporate accounts has been established by the regulatory directive.
The CBN circular reads “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 three per cent and three per cent previously charged on all cash deposits above these thresholds until September 30, 2024.”
Following the CBN directive, banks have written to their customers to inform them of the suspension, according to The Punch.
First Bank in an email to its customers said, “We write to inform you that the Central Bank of Nigeria has extended the suspension of processing fees on cash deposits until 30 September 2024.
“As a result, we will continue to accept cash deposits without charging the previously announced two per cent and three per cent processing fees for individual and corporate accounts, respectively, beyond the initial deadline.”
A source at the United Bank for Africa, who pleaded anonymity, said “We have complied with the CBN directive. We have paused the collection of the deposit processing fees.”
