Naira Scarcity: CBN Suspends Charges On Cash Deposits

The Central Bank of Nigeria (CBN) has issued a fresh directive to banks regarding charges earlier imposed on cash deposits by the former Central Bank of Nigeria governor, Godwin Emefiele.

In the memo issued to banks and other financial institutions and seen by Naija News on Monday, the apex bank directed all banks to immediately stop the collection of charges on deposits above N500,000 for individuals and ₦3,000,000 for corporate organisations.

The statement by CBN read: “Please recall the processing charges imposed on cash deposits above N500,000 for individuals and ₦3,000,000 for Corporates as contained in the ‘Guide to Charges by Banks, Other Financial Institutions and Non-bank Financial Institutions’ issued on December 20, 2019 under reference FPR/DIR/GEN/CIR/07/042.

“The Central bank of Nigeria hereby suspends the charging of processing fee of 2% and 3% previously charged on all cash deposits above these thresholds with immediate effect. This suspension shall remain in effect until April 30, 2024.

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

CBN Gives Update, Reveals Why There Is Fresh Naira Scarcity

Meanwhile, CBN has explained the reason behind the fresh naira scarcity and cash crunch being experienced in some states of the country.

According to a statement made available to newsmen by the Corporate Communications Department of the apex bank, Nigerians are experiencing cash scarcity due largely to high volume withdrawals from the CBN branches by the Deposit Money Banks (DMBs) and panic withdrawals by customers from the ATMs.

The CBN however assured that there is adequate stock of naira for all economic activities and Nigerians have nothing to be worried about even as the yuletide sets in.

The apex bank added that its branches across the country are also working to ensure the seamless circulation of cash.