In a move aimed at providing temporary relief to bank customers and easing cash crunch, the Central Bank of Nigeria (CBN) has announced the suspension of processing fees on cash deposits above N500,000.

The apex bank in a circular to all banks, other financial institutions and non-bank financial institutions stated that this suspension will remain in effect until April 30, 2024.

The decision, announced in a circular signed by the CBN's acting director of banking supervision, Adetona Adedeji comes as a welcome reprieve for Nigerians who have been grappling with the 3 per cent processing fees on deposits and 2 per cent for withdrawals exceeding N500,000, implemented since September 18, 2019. It states: ''Please recall the 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, under reference FPR/DIR/GEN/CIR/07/042.

''The Central Bank of Nigeria hereby suspends the charging of processing fees of 2 per cent and 3 per cent 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 deposits from the public without any charges going forward.'' It states.

This development is expected to facilitate financial transactions for individuals and businesses, particularly those operating in the informal sector who rely heavily on cash. It is also likely to boost economic activity by increasing the flow of cash within the economy.