CBN Reintroduces N10k Charges on Cash Deposits Above N500k

The Central Bank of Nigeria (CBN) has reintroduced fees for deposits exceeding N500,000 for both individual and corporate account holders.

Effective May 2024, individuals will incur a 2% processing fee on deposits above N500,000, while corporate account holders will face a 3% charge on deposits exceeding N3 million.

This directive was communicated to customers by First Bank Nigeria (FBN) in a circular. In an announcement to its customers on Monday, the bank stated: “We write to inform you that, effective 1 May 2024, our processing fees structure on cash deposits has been adjusted by regulatory requirements, the bank said in the statement.

As a result, the following rates will apply: 2% processing fee on deposits above N500,000 for individual accounts and 3% processing fee on deposits above N3,000,000 for corporate accounts, the statement added.

The CBN previously enforced this policy. Initially introduced on September 18, 2019, the policy aimed to promote cashless transactions by imposing a 3% charge for withdrawals and 2% for deposits exceeding N500,000 in individual accounts. Corporate account holders faced a 5% withdrawal charge and 3% for deposits above N3 million.

The CBN later announced the suspension of these charges in a circular released in December. It directed all banks and financial institutions in the country to accept cash deposits without charges until April 30, 2024.

The Central Bank of Nigeria at this moment 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, the circular read.

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

All banks, financial institutions, and non-bank financial institutions in the country are expected to follow new directives.

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