CBN Extends Suspension of Charges on Cash Deposits Above Approved Thresholds to Sept 30

•Publishes list of licenced deposit money banks

James Emejo in Abuja

The Central Bank of Nigeria (CBN) has announced an extension to the suspension of processing fees of two per cent and three per cent previously imposed on all cash deposits above N500,000 for individuals and N3 million for corporates, respectively, with immediate effect.

CBN said the suspension would remain in effect until September 30, 2024, from April 30, 2024.

The bank disclosed the suspension in a circular dated May 6, 2024, signed by CBN’s acting Director, Banking Supervision, Dr. Adetona Adedeji, which was addressed to all banks, Other Financial Institutions (OFIs), and non-bank financial institutions under the apex bank’s regulatory supervision.

The central bank further ordered the financial institutions under its purview to accept all cash deposits from the public without any charges going forward.

The charges were first suspended in December 2023 amid the cash crunch that hit the banks as customers preferred to keep their money away from the banks, partly, because of the exorbitant charges on deposits, especially those exceeding the approved threshold, following the implementation of the cashless policy.

On December 20, 2019, the central bank introduced the revised “Guide to Charges by Banks, Other Financial Institutions and Non-Bank Financial Institutions,” which had detailed approved charges for banking services.

The document provided a basis for the application of charges on various products and services offered by banks and other regulated institutions under its purview.

The guide, which was first released in 2004, was revised in 2013 and 2017 in the light of market developments, such as innovations in products and/or channels and new industry participants.

The bank pointed out that the charges prescribed in the guide were arrived at after extensive consultation with stakeholders. It said the intendment of the guide was to enhance flexibility, transparency, and competition in the Nigerian banking industry.

Hence, where a charge was stipulated as “negotiable”, financial institutions were required to draw the attention of customers to their rights to negotiate and the two parties were required to mutually agree on the applicable charge via a verifiable means.

Although the guide provided for charges on various products and services of financial institutions, it was not exhaustive, the central bank stated.

Financial institutions were required to present any new product, service, or charge not covered by the document to the CBN for prior written approval.

Separately, the central bank also published the comprehensive list of licensed Deposit Money Banks (DMBs) operating within the country.

The list was posted on the CBN website to update the public on the eligible financial institutions operating lawfully.

The publication came amid recent proliferation of financial services institutions, which might not be licensed by the apex bank, as well as licensed banks, which appeared to have operated beyond their license categories.

The list further categorised the banks according to their licenses.

CBN stated that as of April 26, 2024, banks with international authorisation included Access Bank Limited, Fidelity Bank Plc, First City Monument Bank Limited, and First Bank Nigeria Limited.

Others were Guaranty Trust Bank Limited, United Bank for Africa Plc, and Zenith Bank Plc.

CBN also listed commercial banks with national authorisation to include Citibank Nigeria Limited, Ecobank Nigeria Limited, Heritage Bank Plc, Globus Bank Limited, and Keystone Bank Limited.

Others included Polaris Bank Limited, Stanbic IBTC Bank Limited, Standard Chartered Bank Limited, Sterling Bank Limited, and Titan Trust Bank Limited.

Others were Union Bank of Nigeria Plc, Unity Bank Plc, Wema Bank Plc, Premium Trust Bank Limited, and Optimus Bank Limited.

In addition, commercial banks with regional licenses included Providus Bank Limited, Parallex Bank Limited, Suntrust Bank Nigeria Limited, and Signature Bank Limited.

The central bank also listed Mauritius Commercial Bank Representative Office (Nigeria) Limited.