The 2019 Yuletide cheers will go to Central Bank of Nigeria (CBN) as it takes control of ATM withdrawal fee by removing N30 from it.
The Central Bank of Nigeria on Sunday, 22nd December, reduced the withdrawal fee charged for the use of other banks’ Automated Teller Machines(ATM) from N65 to N35.
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.
The N65 ATM fee was imposed on customers after the third withdrawal within one month, after much shrug from business persons in the country who withdraws at least five times a week, the CBN have now taken charge, making it N35 instead – part of the major highlights of the new Guide to Bank Charges released by the CBN on Sunday.
It also removed Card Maintenance Fee on all cards linked to current accounts, and also asked banks to charge a maximum of N1 per mille for customer induced debit transactions to third parties and transfers or lodgments to the customers’ account in other bank on current accounts only.
The guidelines also pegged the Advance Payment Guarantee to a maximum of one per cent of the APG value in the first year and 0.5 per cent for subsequent years on contingent liabilities.
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 to 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.
The CBN has therefore warned banks to ensure full compliance to the new guidelines adding that any bank that violate the provisions of the guidelines would be sanctioned.
In parts, “Financial Institutions are to note that any breach of the provisions of this Guide carries a penalty of N2,000,000 per infraction or as may be determined by the CBN from time to time.”
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”Failure 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.”
Summary of CBN Revised Bank Charges
A. Electronic transfers:
1. N10 for interbank trans less than N5000
2. N25 for interbank trans btwn N5,001 – 50,000
3. N50 for interbank trans above N50,000
B. ATM Withdrawal
N35 (previously 65) after 3rd withdrawal in a month, on another banks ATM.
C. Card Maintenance Charge
1. N50 every 3 months for Savings ( Now quarterly as against the current monthly charge)
2. Zero for Current
D. Account Maintenance Charge
1. Zero for Current
2. Applicable to current accounts only on customer induced transactions