THE Central Bank of Nigeria has directed Deposit Money Banks in the country to pay 10 per cent of the Monetary Policy Rate as the minimum interest rate on savings deposit.
The apex bank said the new provision would take effect from September 1, 2020.
The MPR, currently 12.5 per cent, is the rate at which the CBN lends to Deposit Money Banks.
With the new directive, as contained in a circular, seen by The Point, and signed by the Director of Banking Supervision, Bello Hassan, customers will receive a minimum of 1.25 per cent per annum on savings deposit.
“All deposit money banks are hereby informed that effective September 1, 2020, interest on local currency savings deposit shall be negotiated subject to a minimum of 10 percent of Monetary Policy Rate (MPR),” the circular said.
