Banks stop collection of deposits processing fees

Some banks have started the implementation of the Central Bank of Nigeria’s directive on the extension of the commencement of processing fees on deposits.

On May 1, banks resumed the collection of processing fees on cash deposits.

Based on the regulatory directive, a two per cent processing fee was charged on deposits above N500,000 for individual accounts and a three per cent processing fee on deposits above N3,000,000 for corporate accounts.

On Wednesday, the apex bank announced an extension of the suspension of the processing fees to September 30, 2024.

“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,” the CBN circular said.

Following the CBN directive, banks have written to their customers to inform them of the suspension.

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 did not want his name in mentioned because he was not authorised to speak for the bank, told Saturday PUNCH, “We have complied with the CBN directive. We have paused the collection of the deposit processing fees.”