The Central Bank of Nigeria (CBN) has cut charges for electronic transfer, ATM withdrawals and card maintenance, with effect from January 1, 2020.
According to the latest Guide to Charges by Banks and Other Financial Institutions, customers will pay N10 for electronic transfers below N5,000, N25 for electronic transfer between N5,000 and N50,000, and N50 for electronic transfer above N50,000.
Bank customers now pay N50 charge for electronic transfers below N500,000.
The new Guide also slashes charges for cash withdrawal via other banks’ ATM to a “maximum of N35 after the third withdrawal within the same month.” This charge is now “N65 after the third withdrawal within the same month.”
The CBN further removed Card Maintenance Fee on cards linked to current accounts, with a maximum of one Naira per mille for debit transactions initiated by customers on behalf of third parties, and transfers or lodgments to the customers’ current accounts in other banks.
The CBN Director, Corporate Communications, Isaac Okorafor says the current NIP charges apply to use of Unstructured Supplementary Service Data (USSD), and purchase with cash-back will attract a charge of N100 per N20,000 subject to cumulative N60,000 daily withdrawal. For cards linked to savings account, maintenance fee will be a maximum of N50 per quarter. It is now N50 per month.
Furthermore, there will be no charge for reactivation or closure of savings, current and domiciliary accounts and customers’ status inquiries like confirmation letter, letter of non-indebtedness and reference letter will be N500 per request.
The Guide prescribes 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 its provisions or directive arising from them
The Guide also states that an infraction by a bank shall attract a further penalty of N2,000,000 daily until its directive is complied with or as may be determined by the CBN from time to time.
The Guide requires a bank to log every customer complaint into the Consumer Complaints Management System, generate a unique reference code for each complaint, and give the code to the customer. Failure to do that would be a breach which attracts a penalty of N1,000,000.
The new Guide replaces the Guide to Charges by Banks and Other Financial Institutions of 2017.