The Central Bank of Nigeria (CBN) has recovered a total sum of N65 billion from commercial banks in the country, being amount for wrong charges and deductions from customers’ deposits. The apex bank said the wrong charges were done from 2012 till date and this contravene its guideline.
Customers who complained of wrongful charges and deductions by commercial banks, according to CBN’s Acting Director of Corporate Communications, Isaac Okorafor, have since been refunded.
CBN’s earlier warning to commercial banks
As a result of multiple complains by banks’ customers over illegal deductions, CBN, May 1, 2017, effected a guideline for charges that is expected to be followed by banks and other financial institutions.
The apex bank had warned in May 9 2018, that banks deducting monies illegally from their customers’ accounts for products and services, will be made to refund such monies with interest.
How to prevent these charges
Fada David, Consumer Complaints Management, Consumer Protection Department, CBN, also encouraged bank customers to of approved charges by the apex bank. According to him, there is need for bank users to read the CBN’s Guide to Bank Charges circular to know those charges that their banks were allowed to charge and the correct amount.
In similar vein, Oludamola Atanda of the Consumer Education Division, Consumer Protection Department, CBN, enjoined bank customers to request for their statement of account monthly. By so doing, there is transparency as to the transactions made in individual’s accounts.
David also said, part of the disciplinary measures for wrongful charges and deductions is to make wanting banks to refund such monies with interest.
According to the guide, commercial bank charges include account maintenance fees, stamp duty, Commission On Turnover (COT), SMS alerts, Current account maintenance fee (CAMF), withdrawals on domiciliary accounts, bank drafts, processing fee for purchase and sale of treasury bills, interest on deposits, among others.
The Senate had also resolved in January 2018 to probe illegal charges and deductions from accounts of customers by Banks in the country. This, according to the lawmakers, was in a bid to “pro-actively protect customers’ rights, eradicate short payment of interests and end the culture of excess and arbitrary bank charges; these steps if taken, will avert future occurrence.”
About CBN
The Central Bank of Nigeria (CBN) was established in 1958 and serves as the official banker to the government. As part of its duties, it supervises the operations of financial institution in the country. Its functions also include ensuring monetary and price stability, issue legal tender currency, and maintain external reserves to safeguard the international value of the legal tender currency.
