Bank customers to save 50% from bank charges as CBN reviews guide

Pending strict enforcement by the Central Bank of Nigeria (CBN), the banking public may be saving more than 50 per cent from the amount of money commercial banks deduct from their deposits on daily, weekly and monthly basis.

This is made known by the apex bank in its latest ‘Guide to Charges by Banks and Other Financial Institutions’ released over the weekend and dated April 21, 2017.

The Guide provides a basis for the application of charges on various products and services offered by banks and Other Financial Institutions (OFIs) in Nigeria to their customers.

This document signed by the Director, Financial Policy and Regulation of the CBN, applies to banks and other financial institutions under the supervisory purview of the Central Bank of Nigeria (CBN).

The charges prescribed in the Guide according to the apex bank were arrived at after extensive consultation with stakeholders.

“The intendment of the Guide is to enhance flexibility, transparency and competition in the Nigerian banking industry,” the bank said.

According to the guide, any special request for statement of account (request in a manner other than agreed on mandatory issuance) attracts maximum of N20 per page. This is against N50 and N63 (over 50 per cent) which most banks currently charge their customers.

Also, N50 is to be charged for Electronic Funds Transfer below N10, 000,000 or and above. This is opposed to about N105 being charged by banks for such services.

Current Account Maintenance Fee (CAMF) in respect of customer-induced debit transactions to third parties and debit transfers/lodgements to the customer’s account in another bank, should be negotiable subject to a maximum of N1 per N1 million, the guide stipulated.

According to the CBN, Where a charge is stipulated as “negotiable,” banks and OFIs are required to draw the attention of customers to their rights to negotiate and the two parties are required to mutually agree on the applicable interest and/or charge via a verifiable means.

“Although the Guide provides for charges on various products and services of banks and OFIs, it is not exhaustive. Banks and OFIs are required to present any new product, service or charge not covered by this Guide to the Central Bank of Nigeria for prior written approval.

“This Guide to Charges, which replaces the Guide to Bank Charges issued in 2013, takes effect from May 1, 2017, and may be reviewed from time to time to reflect changes in the business environment,” CBN stated.