Bank customers are to pay a maintenance fee on current account transactions, the Central Bank of Nigeria (CBN) announced at the weekend. The new fee is a negotiable current account maintenance fee not exceeding N1 per mille (N1 per N1,000,000) may be charged in respect of all customer-induced debit transactions.
CBN’s Financial Policy and Regulation Department Director Kelvin Amugo, who announced the fee through a circular to banks, said that the CBN was not oblivious of the impact of declining crude oil prices, operation of Treasury Single Account, and some other market turbulence on the viability and stability of the banking system.
In a circular titled: “Introduction of Negotiable Current Account Maintenance Fee not Exceeding N1/mille”, Amugo explained that the new fee was introduced in the interest of stability of the banking system.
The fee came weeks after the regulator struck out Commission on Transaction (COT) fee, which contributed significantly to lenders’ profitability.
He said the Revised Gide to Bank Charges (RGBC), which came into effect on April 1, 2013 provides for a phased elimination of COT charges. Under the guidelines, a zero COT regime was to come into effect from this month.
“The CBN noted that while the gradual phase out was being observed, some banks continued to charge account maintenance fees in addition to the reduced COT rate, which in effect amounted to double coincidence of charges,” he said.
Amugo said the negotiable current account maintenance fee was in furtherance of the mandate to promote and safeguard a sound financial system. He reminded lenders that 2016 zero COT regime as jointly agreed during the 311th Bankers’ Committee meeting of February 12, 2013 had come into effect and must be complied with.
The CBN, last week, started the implementation of the N50 stamp duty payment on every N1,000 transaction. The CBN said the policy was in line with the provisions of its enabling laws. It pointed out that with immediate effect, all banks and other financial institutions shall start charging N50 per eligible transaction in accordance with the provisions of the Stamp Duties Act and the Federal Government Financial Regulations 2009.
The CBN stressed that all receipts given by any bank or other financial institutions in acknowledgment of services rendered in respect of electronic transfer and teller deposits from N1, 000 and above should be charged.
However, the bank pointed out that payments deposits or transfer by self to self whether inter or intra bank and any form of withdrawals/ transfer s from savings accounts should not be charged. The charges are only payable by receiving accounts. Click to signup for FREE news updates, latest information and hottest gists everyday
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Bring it on, bros. Give it whatever name, fact is we hardly ever knew what banks do with our monies. Giving us palliatives like zero CoT makes no difference. Spare us the nomenclatures.
ReplyDeleteZero COT yet you device other means to take from us. ATM withdrawal fee was cancelled by sanusi, yet Emiefele reintroduced it. Soon, we will keep our monies in our bedroom. My understanding is that stamp duty is paid on documents and it's a one off thing, now you want to charge on withdrawals. Emiefele is clearly a confused man. Is CBN now generating revenue for the government?
ReplyDeleteCBN is just as confused as everyother institution in Nigeria
ReplyDeleteNow I know that Emefiele is dubious and is just like a blind man holding a loaded gun in a dark room. "Maintenance charges" of N1 per N1000? Call it what you will - that is the same as the COT which was said to have ceased to exist!
ReplyDeleteEmefiele came from a commercial bank and he has a pact with the banks to enact policies that benefit them. He is not working for the country, he is working for his former employers. That is why commercial bankers should not be appointed CBN Governor.
ReplyDeleteAm amazed at this kind of policy. If someone sends me N500,000 to send to his brother in the village, it means when the bank pays me, the bank must keep N25,000 of it as stamp duty and when I send the money to the friends brother, he is again charged N22.500. Out of this N500,000 a sum of N77,500 is lost to the CBN not to mention the maintenance charges that will follow. Will the common man have a chance in this country,Where are we really heading to?
ReplyDeleteThis is robbery. These people keep robbing us. The CBN govnor is a thief.
ReplyDeleteBuhari is pure bad luck ,that's how I see him
ReplyDeleteEmefiele has a stake in the commercial banking business, so it is just natural for him to fight for his own popcket
ReplyDeleteWhy are you guys complaining? Is this not the part of CHANGE you voted for. Common on, let's embrace the CHANGE of clueless BUHARI administration that have promised to inflict hardship on the common people that voted for CHANGE. There's fire on the mountain run run run!
ReplyDelete