New CBN’s Rule Will Slash Banks’ Revenue Recorded From Alternate Channels Charges In The Coming Year!

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The CBN has issued new rules regarding charges in alternate channels, with effect from January 1, 2020.

Areas reviewed included:

* Electronic transfers charges
* ATM fees
* Card maintenance fees

* Electronic transfers charges

Starting from January 1, 2020, according to the CBN, intra bank electronic transfers below #5,000 will attract a charge of #10, and #25 for electronic transfer between #5,000 and #50,000. Only electronic transfer above #50,000 will attract #50 charge.

As opposed to previous charge of #50 for electronic transfers below #500,000.

* ATM fees

New CBN’s rules regarding ATM fees slashes charges from #65 to #35 for cash withdrawal via other banks’ ATM after the third withdrawal within the same month.

* Card maintenance fees

Card Maintenance Fee on all cards linked to current accounts has been eliminated. Banks will also now charge a maximum of #1 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—cheques, reversal of transactions and all bank-induced debits.

While cards linked to Savings account, a maintenance fee has been reduced to a maximum of #50 per quarter to #50 per month which will therefore amount to a sum of #200 per year as opposed to #600 for a year.

Other highlights included no charges on reactivations or closures of accounts such as Savings, Current , or Domicilliary. Also, customers request on account status like confirmation letter, letter of non-indebtedness, and reference letter will now attract a flat-fee of #500 per request.

However, failure of banks and financial institutions to adhere to the CBN’s new rules will attract an infraction, a penalty of #2,000,000, or as determined by the CBN.

In respect of feedback and complains, banks are expected to lodge in customers’ complains into the Customer Complaints Management System (CCMS), and generate unique code for them.
Non-adherence to this particular instruction by banks will attract a sanction of #1,000,000.

Meanwhile, Banks recorded revenue of over N135 billion ($374 million) from just electronic transfer charges in the first nine months of 2019.

Bank charges in Nigeria are too many, ridiculous and sometimes expensive.

What do you think?