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What You Need To Know About The New CBN-Approved Bank Charges

A few days ago the Central Bank of Nigeria (CBN) announced a reduction in several bank charges, eliciting positive reactions from several quarters.

Here’s all you need to know about the new CBN directive.

  • For current accounts, the CBN has ordered the removal of card maintenance fee as the account already attract account maintenance fee
  • For savings accounts, the card maintenance fee is fixed at N50 per quarter as against the N50 per month it currently attracts.
  • A graduated fee scale will now replace the N50 flat fee that electronic transfers attract. What this means is that transfers below N10,000 would attract a maximum charge of N10; transfer from N5,001 to N50,000 would attract N25, and transfers above N50,000 would attract N50 fee.
  • Annual card maintenance for Foreign Currency (FCY) denominated cards has now been reduced from $20 to $10.
  • Remote on ATM charges after third withdrawal within a month now stands at N35 instead of the previous N65.
  • The charge for hardware token will on a cost-recovery basis subject to a maximum of N2,500 from the previous maximum charge of N3,500.
  • Fee for SMS mandatory alert will be on cost recovery from the previous maximum charge of N4.
  • Bill payment via e-channels will attract a maximum charge of N500 from 0.75 percent of the transaction value subject to a maximum of N1,200.

Speaking on the development, the Director of Corporate Communications for the CBN, Isaac Okorafor, said the move was aimed at reducing the cost of banking services to customers.

He said: “It sets out minimum standards on fair treatment of consumers, disclosure and transparency, business conduct, complaint handling, and redress in order to protect the rights of consumers, hold banks, other financial and non-bank financial institutions accountable and preserve trust in the entire financial system.”

As part of the new guidelines, the CBN has also moved to increase the speed of attending to complaints from depositors. According to the new arrangement, any bank that failed to acknowledge the complaints from depositors will pay a fine of N2 million.

Also, each week the bank refused to address customer’s complaints within the prescribed timelines, it would also attract a fine of N500,000 per week.

Okarafor said: “Non-resolution of complaints within prescribed timelines attracts a penalty of N500,000 per complaint per week while the infraction subsists.

“Non-acknowledgment of complaints from customer or non-issuance of tracking numbers attracts N2 million per complaint Non-response to request or failure to comply with CBN directive attracts a penalty of N2 million.”

Again, the CBN stated further that false or non-rendition of returns/reports would attract N100,000 fine, in addition, N10,000 for each day the infraction continued.

“Failure to comply with other provisions of the Regulations not specified above shall attract sanctions provided in the CBN Act, the BOFIA, other enabling laws and regulations,” the CBN said

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Written by Draj

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