CBN Removes Maintenance Fees, Reduces Bank Charges

The Central Bank of Nigeria (CBN) announced a drop in electronic banking rates earlier this month, in accordance with its published rules for banks and other financial institutions, which were made public at the time of the announcement.

The ‘increased transformation that has occurred in the financial industry over the prior few years,’ according to Bank of America, is a primary driving factor behind the research.

President Muhammadu Buhari and Governor of the Central Bank of Nigeria, EFFOB, signed the amended guideline, which was first published in 2004 and revised three times since then, including in 2013, 2017, and 2020, before being revised once more in 2019.

The Guidelines For Removal Of Bank Charges First Came Into The Limelight Over 15 Years Ago

The guideline was first published in 2004 and revised three times since then, including in 2013, 2017, and 2020, before being revised once more in 2019.

According to the Apex Bank’ s ruling, charges assessed by banks, both financial and nonfinancial, that are made in the course of their business and under the authority of their license or regulation are covered by the rule and must be disclosed.

In a statement made by the Central Bank of Nigeria, the bank stated that several fees have been reduced, including the Standing Order Charge (In- Branch), ATM Management Fees, electronic fund transfers, and bulk payments, among other things (CBN).

It Was Also Reported That The Standing Order Charge Will Also Be Removed

According to a recent press release from the Central Bank of Nigeria (CBN), the Standing Order Charge for intra- bank transfers will be abolished, as opposed to the N300 charge that was instituted under the previous rules in 2017. The Standing Order Charge was introduced under the previous rules in 2017.

When it comes to invoice payment (including payments made through other E- channels), an invoice biller or merchant can negotiate with the sender for a maximum of N500 per beneficiary payable by the sender, a review from N1, 200, or a 0. 75 percent payment from the invoice biller or merchant, depending on the conditions.

Fees for electronic funds transfers have been reduced, with the exception of transactions under N5000, which have not been affected by the reduction.

Except for transactions below the 5000- naira barrier, fees for electronic funds transfers have been cut to N10 for transactions under $5, 000, N26 for transactions between $5, 000 and $50, 000, and N50 for transactions over $50, 000; rates for transactions under $5, 000 are still N10.

After completing the third withdrawal in a single month, the price for withdrawing money from other banks’ ATMs has been reduced from N65 to N35 each withdrawal as a result of this completion.

Additionally, The Central Bank Of Nigeria, Likewise, Have Reduced ATM Charges

In addition, the Central Bank of Nigeria (CBN) has reduced the cost of paying bills through an ATM from N100 to N50, which is a huge drop from the previous rate of N100. The elimination of the N100 per month debit card maintenance fees that were previously in place is a critical component of the new policy.

According to the Central Bank of Nigeria, individual financial institutions that fail to comply with any of the new guide’ s recommendations may be subject to a fine of N2, 000, 000 or such other sum as the Central Bank of Nigeria may determine from time to time.

The text states that ” when it is established that a bank has wrongly assessed a particular fee to its customers, the provisions of Section I above shall apply to each individual customer’ s charge. ”

A daily penalty of N2, 000, 000 will be charged against you for each day that you fail to comply with a Central Bank of Nigeria instruction in respect to a breach until the directive is complied with, or until the Central Bank of Nigeria finds that you have done so.

List Of Important Electronic Charges Are Explained Below

It is intended that banks will enter each and every complaint received from their customers into the Consumer Complaints Management System (CCMS) and that they will generate a unique reference code for each complaint lodged, which will be conveyed to the customer.

The following is a list of some of the most significant electronic charges you might encounter: In the case of cards denominated in foreign currency (FCY), one of the most notable improvements is a decrease in the yearly fee, which has been reduced from $20 to $10.

After you complete your third transaction in a given month, the ATM fee is reduced from N65 per withdrawal to N35 per withdrawal, resulting in a savings of N65 per withdrawal.

Instead of the previous maximum charge of N3, 500, the fee for hardware tokens will be based on cost recovery, with a maximum charge of N2, 500. This is a change from the former maximum charge of N3, 500.

This represents a decrease from the previous maximum fee of N3, 500. This is a drop from the previously established maximum cost of N3, 500 per transaction. Compared to the previously stated maximum cost of N3, 500 per transaction, this represents a significant reduction.

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