CBN slashes electronic transfer, ATM withdrawal charges

By AdvocateNews on 22/12/2019

Share on facebook Yahoo mail icon Gmail icon

Views: 1,750


The Central Bank of Nigeria (CBN) has reviewed downward electronic transfer and ATM fees as well as card maintenance fees.

The new charges were contained in the latest Guide to Charges by Banks and Other Financial Institutions just released by the CBN.

According to the CBN, bank customers will now pay N10 for electronic transfers below N5,000, and N25 for electronic transfer between N5,000 and N50,000. Only electronic transfer above N50,000 will attract N50 charge.

Previously, bank customers pay N50 charge for electronic transfers below N500,000.

Further, the CBN in the new Guide to Bank Charges, slashed charges for cash withdrawal via Other bank’s ATM to “maximum of N35 after the third withdrawal within the same month” from “N65 after the third withdrawal within the same month”.

The CBN also removed Card Maintenance Fee (CAMF) on all cards linked to current accounts, a maximum of one Naira per mille for customer induced debit transactions to third parties and transfers or lodgments to the customers’ account in other banks on current accounts only,

Commenting on the new charges, Director, Corporate Communications, CBN, Isaac Okorafor explained that the current NIP charges apply to use of Unstructured Supplementary Service Data (USSD), purchase with cash-back will attract a charge of N100 per N20,000 subject to cumulative N60,000 daily withdrawal. Also, for cards linked to savings account, a maintenance fee has been reduced to a maximum of N50 per quarter from N50 per month amounting to only N200 per annum instead of N600.

Furthermore, he hinted that there will be no more charges for reactivation or closure of accounts such as savings, current and domiciliary accounts while status enquiry at the request of the customer (like confirmation letter, letter of non-indebtedness and reference letter) will now attract a fee of N500 per request.

On Current Account Maintenance Fee (CAMF), the Guide expressly stated that this would be applicable only to current accounts in respect of customer-induced debit transactions to third parties and debit transfers/lodgments to the customer’s account in another bank. It emphasized that CAMF is not applicable to Savings Accounts.

According the Director, the CBN carried out the review of the Guide, which also prescribes charges permissible for Other Financial Institutions and non-bank financial institutions, in order to align with market developments.

To guard against excess, unapproved or arbitrary charges by banks and other financial institutions, the Guide stipulates a penalty of N2,000,000 per infraction or as may be determined by the CBN from time to time for financial institutions that breach any provision of the guide. The Guide also emphasized that failure by any bank to comply with CBN’s directive in respect of any infraction shall attract a further penalty of N2,000,000 daily until the directive is complied with or as may be determined by the CBN from time to time.

Consequently, the CBN, directed banks to log every complaint received from their customers into the Consumer Complaints Management System (CCMS) in addition to generating a unique reference code for each complaint lodged, which must be given to the customer. Failure to log and provide the code to the customer, it added, amounts to a breach and is sanctionable with a penalty of N1,000,000 per breach.

The charges prescribed in the Guide were arrived at after extensive consultations with stakeholders and is expected to enhance flexibility, transparency and competition in the Nigerian banking industry.

This Guide, which replaces the Guide to Charges by Banks and Other Financial Institutions issued in 2017, takes effect from January 1, 2020, and may be reviewed from time to time to reflect changes in the business environment.

The CBN therefore urged financial services providers and their customers alike to acquaint themselves with the provisions of the Guide and be properly guided accordingly.

Posted 22/12/2019 4:07:44 PM

 

Share on facebook Yahoo mail icon Gmail icon


 

You may also like...
Buhari meets governors, security chiefs over insecurity, State...

EFCC arrests 30 cybercrime suspects at Kwara State...

Benue Airport Drama: Osinbajo, Air Force apologise to...

UNIBEN students protest as ASUU strike enters day...

1,000 Nigerians apply to return from U.S., others...

COVID-19: NYSC shifts camp reopening date, bans religious...

You have failed to deliver on security, bury...

There’s no security collapse in Nigeria, says Buhari...

FG plans reintroduction of toll gates

Police officer, two suspected IPOB/ESN killed in Imo...

MTN reacts to network outage

Gunmen disguised as NSCDC operatives kill two, injure...

 

Latest News Peter Obi: Arrest, prosecute Mahdi Shehu, Ohanaeze tells FG 2023: Obasanjo may support Peter Obi Edeoga: Can a pact breaker keep campaign promises? Over 13,000 APC members defect to PDP in Kaduna Umahi denies ordering police to teargas, attack Peter Obi’s supporters in Ebonyi 2023: North will vote massively for Peter Obi — Prophet El-Buba Senator Ubah: How I narrowly escaped assassins’ bullets Some people are after my life – Peter Obi, LP presidential candidate, alleges Abba Kyari denies ownership of 14 assets, mall, estate, others, demands evidence from NDLEA Thugs attack Labour Party meeting in Enugu We’ve no agreement with Tinubu on Muslim-Muslim ticket – CAN insists The YouTube prayer channel started during Covid that's become a global movement

 

Most Read Sickle cell support group seeks government intervention (461,927 views) Ex-Heads of State will protect Jonathan from persecution —Kukah (461,927 views) Fleeing ex-DG Imo Broadcasting Corporation who stabbed wife to death arrested (461,927 views) Ugwuanyi commends FG’s siting of ICT University in Enugu (461,926 views) Ebonyi bans embalming of corpses in homes (461,926 views) Full Text of Governor Ifeanyi Ugwuanyi’s 2016 Budget Speech (461,926 views) I’ve no Coronavirus, govt wants to kill me – Anambra Index case (461,926 views) ASUU strike: Senate intervention ends in deadlock (461,924 views) FG sends new directive to banks, schools as Buhari extends lockdown by four weeks (461,923 views) HUSHPUPPI: CRIMINALS HAVE NO TRIBE. THEY SHAME ALL OF US... (453,637 views) DEMOCRACY DAY: President Muhammadu Buhari’s full speech (389,044 views) All you need to know about Peter Obi, PDP VP Candidate (387,614 views)

 

 

SECTIONS FAITH (159) EDITORIAL (25) NEWS (9,920) POLITICS (522) SOCIETY (135) SPORTS (67) BUSINESS (381) HEALTH (63) EDUCATION (53) ENTERTAINMENT (65) INTERNATIONAL (232) TECHNOLOGY (8) COLUMNISTS (57) LETTERS (4) OPINION (47)

 

 


There are no video entries posted yet.