The Central Bank of Nigeria (CBN) has reduced ATM withdrawal charges, inter-bank transfer fees as it issues a downward review of charges for electronic banking transactions in its revised guidelines to charges by Banks, Other Financial Institutions (OFIs) and Non-Bank Financial Institutions.
In its amended guidelines to charges by banks, other financial institutions (OFIs), and non-bank financial institutions, the Central Bank of Nigeria (CBN) has downward reviewed charges for electronic banking transactions.
This is according to the circular by Chibuzor Efobi, the Director, Financial Policy and Regulation Department, titled “RE: GUIDE TO CHARGES BY BANKS, OTHER FINANCIAL AND NON-BANK FINANCIAL INSTITUTIONS”.
The CBN stated that the review was in response to “further evolution in the financial industry in the last few years.’’
The new guide, according to the top bank, included a review of other bank charges in order to comply with market changes.
There were some changes like withdrawals on ATMs being reduced from N65 to N35 after the third withdrawal within the same month. CBN also cut inter bank transfers to maximum of N50 per transaction from N300.
It also included new sections on accountability and responsibility, as well as a sanction regime to directly address instances of excessive unapproved, (arbitrary) charges, according to the statement.
What the CBN is saying
The CBN stated that the guide provides a basis for the application of charges on various products and services offered by banks and other regulated institutions under the purview of the apex bank.
“The guide was first released in 2004 and revised in 2013 and 2017 due to market developments such as innovations in products and channels, as well as new industry participants,” CBN said.
According to the apex bank the new Guide includes, amongst others:
- Downward review of charges for electronic banking transactions;
- Review of other bank charges to align with market developments
- Inclusion of new sections on Accountability/Responsibility and a Sanction Regime to directly address instances of excess, unapproved and/or arbitrary charges.
- The revised Guide to Charges by Banks, Other Financial and Non-Bank Financial Institutions takes effect on January 1, 2020.