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.
The Central Bank of Nigeria in order to align with market development and promote financial inclusion has revised the charges on financial transactions.
Most of the rates/charges which were reviewed downward to encourage people use alternative channels and foster financial inclusion.
The new rates are as below
1. Electronic Funds Transfer
Amount (₦)
Charges (₦)
Below 5,000
10
5,001 - 50,000
25
Above 50,000
50
2. RTGS (Real Time Gross Settlement)
₦950
3. Card Maintenance Fee
Card Maintenance Fee
s/n
Type of Card
Charges
1
Foreign Currency Debit/Credit Card
$10 Per annum or its equivalent
2
Naira/Debit Card
a. Cards linked to Current Account- No Charge
b. Cards linked to Savings Account- maximum of ₦50 maintenance fee quarterly
4. Card Issuance Fee
Dedit Card
s/n
Description
Charges (₦)
1
Issuance Fee
1,000 naira (Irrespective of the card
2
Remote on us (Use of other bank's atm
maximum of ₦35 after the third withdrawal within the same month
3
Replacement fee
1,000
4
Prepaid Card loading/Unloading
No charge
Credit Card
S/N
Description
Charges (₦)
1
Issuance Fee
1,000
2
Replacement Fee (lost or damaged)
1,000
3
Renewal Fee (EXPIRED)
1,000
4
Interest Charges
Negotiable
5. ATM Transaction
S/N
Description
Charges (₦)
1
On-us (Withdrawer from issuing bank)
No charge
2
Not-on-us (Withdrawal from other banks in Nigeria
₦35 after the third withdrawal within the same month
3
International Withdrawals (Per transaction) whether debit or credit card
Exact cost by international acquirer (Cost recovery)
6. Merchant Service Commission
Description
Charges
General Merchant (Includig Domestic, International Travels and Entertainment)
0.50% of transaction value but not more than ₦1,000
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.
The Central Bank of Nigeria in order to align with market development and promote financial inclusion has revised the charges on financial transactions.
Most of the rates/charges which were reviewed downward to encourage people use alternative channels and foster financial inclusion.
1. Electronic Funds Transfer
2. RTGS (Real Time Gross Settlement)
₦950
3. Card Maintenance Fee
a. Cards linked to Current Account- No Charge
b. Cards linked to Savings Account- maximum of ₦50 maintenance fee quarterly
4. Card Issuance Fee
5. ATM Transaction
6. Merchant Service Commission