The Central Bank of Nigeria has released a new directive reducing the inter-bank withdrawal fee charged at Automated Teller Machines (ATM) from N65 to N35, and also slashed fees for bank transfers.
The reduction in fees was revealed in the directives announced by the CBN in its new Guide to Bank Charges released on Sunday.
According to the CBN, the reduction was a bid to encourage financial inclusion. Previously, a fee of N65 was charged on customers after the third withdrawal within one month and bank customers pay N50 charge for electronic transfers below N500,000.
However, the new guide to bank charges slashed the charges for cash withdrawal via another bank’s ATM to a maximum of N35 after the third withdrawal within the same month.
For electronic bank transfers, customers will now pay N10 for transfers below N5,000, N25 for transfers between N5,000 and N50,000. Only transfers above N50,000 will now attract the N50 charge.
The CBN also removed Card Maintenance Fee (CAMF) on all cards linked to current accounts, and a maximum of N1 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.
Speaking on the new charges, Director of Corporate Communications CBN, Isaac Okorafor, explained that for cards linked to a savings account, the 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.
He added that the guide also prescribes charges permissible for Other Financial Institutions and non-bank financial institutions.
According to the CBN, any bank which fails to comply or violates the new guidelines will be sanctioned N2 million per infraction.
“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.
Extract from Bank Charge Guide
It further added that failure to comply with directives concerning an infraction will attract an additional N2 million daily until the directive is complied with.
“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.”
Extract from Bank Charge Guide
The new bank charge guide replaces the Guide to Charges by Banks and Other Financial Institutions issued in 2017. It will take effect from January 1, 2020.
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