The Central Bank of Nigeria has issued a new guide for charges by banks, other financial and non-interest financial institutions in response to further evaluation in the financial industry in the last few years.
The guide according to the apex Bank provides a basis for the application of charges on various products and services offered by banks and other regulated institutions under its purview.
The guide which was first issued in 2004 was revised in 2013 and 2017 in the light of market developments such as new innovations in products and channels and new industry participants.
The Central Bank of Nigeria circular to all banks, other financial and non-bank financial institutions, signed by Director, Financial Policy and Regulation Department Chibuzo Efobi and released over the weekend said the guide include among others, downward review of charges for electronic banking transactions, review of other bank charges to align with market development and inclusion of new sections on accountability/responsibility and a sanction regime to directly address instances of excess, unapproved and arbitrary charges.
The revised guide to charges according to the Central Bank of Nigeria circular would take effect on January 1, 2020.
The guide stated that interest on deposit for savings account required a minimum of 30 percent Monetary Policy Rate per annum but not applicable if a customer makes more than four withdrawals in a month.
It further said that the Executive Compliance Officers (ECO) shall monitor compliance with the requirements of this Guide and shall be held liable for any breach while the Head, Information Technology Division shall ensure that the name of all system-related/generated/posted charges shall conform strictly to this Guide.
The new guide also said that the Head, Information Technology Division shall render monthly report attaching a schedule of all failed transactions on e-channels (ATM, PoS, mobile, web/internet and related channels) that originate or terminates in his bank, to the Director, Payments System Management and Consumer Protection Departments of the Central Bank of Nigeria.
It stated that the details of all fees and charges applicable to a transaction shall be disclosed to the customer at the point of consummation where applicable, while transaction receipt/alert/confirmation for any charge shall contain a description of the charge.
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