*Deploys cash from branches to locations in dire need
By Nudoiba Ojen
As part of efforts to alleviate the ongoing cash scarcity crisis, the Central Bank of Nigeria (CBN) has announced temporary suspension with immediate effect of processing fees on cash deposits exceeding certain thresholds.
This suspension, which will remain in place until April 30, 2024, aims to incentivize cash deposits and enhance financial transactions for individuals and businesses.
Before now, individuals were charged a two per cent processing fee on cash deposits above N500,000, while corporate entities were paying a three per cent fee for deposits exceeding N3,000,000.
The Acting Director of Banking Supervision, Dr Adetona Adedeji, who signed the directive, mandated all CBN-regulated financial institutions to comply, meaning that individuals and businesses can now deposit any amount of cash without incurring additional charges.
This according to a CBN official, “will address the immediate cash shortage by encouraging the deposit of available cash into the formal banking system. This will increase the liquidity available for withdrawals and economic activity.
“Additionally, it promotes financial inclusion by making banking services more accessible to individuals who primarily rely on cash transactions.”
The suspension of processing fees on cash deposits is expected to provide immediate relief to individuals and businesses affected by the cash shortage, boosting economic activity and access to financial services in the short term.
It was also gathered that as parts of efforts to address the current cash crunch in the country, the CBN has started deploying cash from its branches across the country to locations in dire need of cash.
Another CBN official said that “efforts are currently being made to move cash to where the scarcity is hardest.”
He reiterated that the CBN has sufficient cash to meet the transaction demands of cash-using members of the public.
He attributed the biting cash crunch to the panic withdrawals of cash by Nigerians ahead of the yuletide to forestall the experience of the last year.
The CBN’s latest directive and action to deploy cash to needy areas demonstrates its commitment to addressing the current cash scarcity crisis while promoting a cashless economy and ensuring a robust and inclusive financial system.
