The Central Bank of Nigeria (CBN) has reduced charges applicable on electronic bank transactions for account holders across the country. The new charges were contained in the latest Guide to Charges by Banks and Other Financial Institutions, released by the CBN on their Twitter.
Here’s all you need to know about the changes effected by CBN:
According to the CBN, bank customers will now pay N10 for electronic transfers below N5,000, and N25 for electronic transfers between N5,000 and N50,000. Only electronic transfers above N50,000 will attract N50 charge. Previously, bank customers paid N50 charge for electronic transfers below N500,000.
The CBN’s 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 has 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.
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 the previous N600 charge.
On Current Account Maintenance Fee (CAMF), the Guide 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.
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.
This Guide, which replaces the Guide to Charges by Banks and Other Financial Institutions issued in 2017, takes effect from January 1, 2020, and will reviewed from time to time to reflect changes in the business environment.