FRI MAY 10 2024-theGBJournal| Central Bank of Nigeria (CBN) have extended a policy that waives processing fees on cash deposits exceeding certain amounts. This benefit will last until September 30th, 2024.
Originally, these fees were introduced in December 2019 for deposits exceeding N500,000 for individuals and N3 million for businesses.
However, the CBN suspended them in December 2023. This extension ensures all banks continue accepting cash deposits without these charges until the new deadline.
This decision comes alongside the recent implementation of a 0.5% cybersecurity levy on electronic transactions, raising some concerns.
Key Highlights:
The CBN is extending a previous suspension of processing fees on large cash deposits. The 2% and 3% processing fees are suspended until September 30, 2024.
Possible Reasons for Extension:
Encouraging Cash Deposits: The CBN might be aiming to incentivize people to deposit cash into the banking system and mop up excess liquidity outside the banking system.
Evaluating Policy Impact: The extension could allow the CBN to assess the effectiveness of the initial suspension. Did it increase deposits as intended? Are there unintended consequences?
Considering Alternatives: The CBN may be exploring alternative solutions to achieve their goals, and this suspension buys them more time.
Potential Implications:
Increased Deposits: Banks might see a rise in cash deposits, impacting their liquidity management.
Reduced Revenue: Banks may lose some income previously generated from these processing fees.
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