Cash scarcity: CBN suspends processing fees on cash deposits

BRANDPOWER reports that a processing charge of two per cent was, hitherto, imposed on cash deposits above N500,000 for individuals, as contained in a CBN  guide issued in December 2019.

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Cash scarcity: CBN suspends processing fees on cash depositsIn a bid to tackle the prevailing cash scarcity in the country, the Central Bank of Nigeria (CBN), on Monday, announced the suspension of the processing fees on cash deposits charged banks and other financial institutions till April 2024.

The suspension is contained in a circular signed by Dr Adetona Adedeji, the Director, Banking Supervision, and addressed to “all banks, other financial institutions and non-banking financial institutions”.

BRANDPOWER reports that a processing charge of two per cent was, hitherto, imposed on cash deposits above N500,000 for individuals, as contained in a CBN  guide issued in December 2019.

The guide also stipulated a three per cent charge for corporate cash deposits above N3 million.

According to Adedeji, the CBN hereby suspends the charging of processing fees of two per cent and three per cent previously charged on cash deposits above these thresholds with immediate effect.

“The suspension shall remain in effect until April 30, 2024.

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

BRANDPOWER reports that there has been complaints by the banking public of shortage of cash across banking halls and ATMs in the country.

Some bank customers in the Federal Capital Territory (FCT) on Manday appealed to the Central Bank of Nigeria (CBN) to urgently address cash scarcity issues to ensure swell celebrations during the yuletide.

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Some of the customers who are also small business owners told the News Agency of Nigeria (NAN) in Abuja on Monday, that the development would result in financial transaction difficulties if not addressed.

However, the CBN in a statement issued by its Corporate Communications Department said there was no shortage of banknotes, saying there was enough for economic activities in the country.

CBN said the scarcity was caused by a large volume of cash withdrawals from its branches by Deposit Money Banks (DMBs) across the country.

The bank also said that panic withdrawals by bank customers were partly responsible for the scarcity.