Reduction in bank charges: Gbadebo, others lauds CBN

………..calls for more regulations

COMFORT EKELEME

A shareholder activist, Alhaji Olatokunbo Gbadebo has commended the Central Bank of Nigeria’s (CBN) decision to reduce fees for electronic banking operations, saying it is a welcomed development.

CBN recently announced a reduction of fees for electronic banking operations in its published guidelines to banks and other financial institutions.

In an interview with Daily Champion, Gbadebo said CBN is doing its job efficiently, urging the apex bank to do more.

He said the reduction showed that the CBN is listening to the complaints of bank customers.

He said, “I am happy that CBN is looking in that direction, I hope they can do more.

According to him, the development will encourage bank customers, adding that so many customers are losing interest in the activities of Nigerian banks.

Also speaking, a trader, Mr. David Akpatre, praised the apex bank and said that they had actually worked their talk.

“The CBN actually have reduced the charges because I intentionally went to the cash machine to check, to be sure they are not just reducing it on paper.

“But you know my only worry is that the banks may find another way to take back these monies from customers.

“If there is a way the CBN can monitor the banks and give strict supervision on these issues, I think it will help,’’ Akpatre said.

Meanwhile, the CBN said the review was in response to “further evolution in the financial industry in the last few years.’’

The Amended guideline, first published in 2004 and revised in 2013, 2017, and 2020, was signed by the Director, Financial Policy and Regulation Department of CBN, Chibuzor Efobi.

The apex bank said the guideline applies to charges by Banks Other than Financial and Non-Financial under its licence or regulation.

The document revealed that the CBN has reduced the charges on some transactions including Standing Order Charge (In-Branch); Automated Teller Machine (ATM) Maintenance Fees; Electronic Fund Transfers and Bulk Payments among others.

In the latest release, CBN said Standing Order Charge for intra-bank will be free compared to the N300 in the 2017 guideline.

For Interbank Transfers, the CBN cut the charges to a maximum of N50 per transaction compared to the N300 held in 2017.

Bills Payment (Including Bills Payment through other E-channels) is Negotiable subject to a maximum of N500 per beneficiary payable by sender, a review from the N1, 200 or 0.75 per cent for a biller or merchant to pay.

Electronic Funds Transfer has also been reviewed downwards to N10 charge for a transaction below N5000; N26 for the transaction of N5001 to N50, 000 while transactions above N50, 000 will be charged N50.

Withdrawals on other banks’ ATMS have been reduced from N65 to N35 after the third withdrawal within the same month.

The CBN also reduced ATM Bill Payment from N100 to N50. Debit card maintenance charges that were N100/Month have been removed in the new guideline.

The CBN however stated that financial institutions that breach any of the provisions in the new guide would face a fine of N2, 000,000 per infraction or as may be determined by the CBN from time to time.

It said,” Where a bank is found to have wrongfully imposed a particular charge on its customers, the provision of Section (i) above shall apply for the charge on each customer.

“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.

“Banks are required to log every complaint received from their customers into the Consumer Complaints Management System and must generate a unique reference code for each complaint lodged, which must be given to the customer,” CBN said.