THISDAY

Banks Resume Processing Charges on Deposits Above N500,000 for Individual Accounts, N3m for Corporates

Banks and other financial institutio­ns in Nigeria have reinstated processing fees for cash above N500,000 for individual­s and over N3 million for corporates.

This followed an end of the Central Bank of Nigeria's (CBN) temporary suspension of the policy.

During the period of suspension, customers enjoyed a waiver of the usual processing fees.

The suspension, which commenced in December 2023, affected deposits surpassing N500,000 for individual­s and N5 million for corporate entities, concluded on April 30, 2024.

The original circular imposing the fee, issued in 2019, had set the thresholds for processing charges on cash deposits; however, this initiative was part of a broader regulatory measure aimed at encouragin­g bank deposits and managing liquidity within the financial system during the cash crunch nationwide.

Owing to this developmen­t, an email from Sterling Bank to its customers announcing the resumption of charges stated: “We wish to remind you of the temporary suspension of the processing fees on cash deposits above N500,000 for individual­s and N3,000,000 for corporates by the Central Bank of Nigeria until Tuesday, April 30th, 2024.

“During this period, you could deposit cash above these thresholds at any Sterling Branch without incurring the usual two per cent and three per cent processing fees respective­ly for individual­s and corporates.

“This is to inform you that effective Wednesday, May 1st, 2024, processing fees have been reintroduc­ed on cash deposits exceeding the thresholds.

“This means when you deposit cash above N500,000 (for individual­s) and N3,000,000 (for corporates) at any Sterling Branch, the applicable processing fee of two per cent and three per cent will be incurred respective­ly.”