CBN backtracks, orders banks to suspend charges

The Central Bank of Nigeria (CBN) has announced it is suspending charges for processing large sums of money.

The Apex bank stated this in a circular issued on Monday.

The directive to banks, financial institutions and non-financial institutions urged suspension of charges initially imposed on bank deposit of within N500,000 (individual) and N3, 000, 000 (corporate).

Under the former policy, the CBN had directed banks and non-financial institutions to charge 2 per cent withdrawal processing fee for individual depositors and 3 per cent for corporate depositors.

“The suspension shall remain until April 30, 2024.”

“All financial institutions regulated by the CBN should accept all cash deposits from the public without any charges going forward, ” the CBN said.

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The measure will supposedly boost cash deposits, liquidity in the economy, and enhance transactions involving transfers of large sums of money.