CBN slashes ATM withdrawal fee to N35

...Reduces electronic transfer charges

….Imposes N2m fine on Banks per infraction

…Removes card maintenance fee on all cards linked to current accounts

The Central Bank of Nigeria (CBN) has slashed withdrawal fees usually charged after the third withdrawal from Automated Teller Machines (ATM) within the same month from the current charges of N65 to N35.

The new directive was contained in the new Guide to Bank Charges released on Sunday, where the CBN also removed Card Maintenance Fee on all cards linked to current accounts and also instructed banks to charge 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.

According to the changes made by the CBN, bank customers will henceforth pay N10 for each electronic transfers below N5, 000, and N25 for electronic transfer between N5, 000 and N50,000.

Briefing newsmen on Sunday in Abuja, Mr. Isaac Okorafor, the bank’s Director, Corporate Communications Department, said the new rule, which takes effect from Wednesday, January 1, states that electronic transfer above N50, 000 will be at the cost of N50.

Okorafor said the step was in furtherance of the bank’s quest to make financial services more accessible and affordable to various stakeholders in the economy.

The guidelines, however, stated that any Financial Institution that breaches any of the provisions as contained in the new Guide carries a penalty of N2 million per infraction or as may be determined by the CBN from time to time.

The sanctions read in parts: “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.

“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.”

According to Okorafor, other reductions include Advance Payment Guarantee (APG), now pegged at maximum of one per cent of the APG value in the first year and 0.5 per cent for subsequent years on contingent liabilities.

On debit card charges, the apex bank spokesman said that the new guide stipulated that a one-off charge of N1,000 applied to the issuance of cards, irrespective of card type regular or premium.

He noted that the same one-off charge of N1,000 applied for the replacement of debit cards at the customer’s instance for lost or damaged cards.

According to Okorafor, upon expiry of existing cards, customers are to pay the same one-off charge of N1,000 irrespective of card type and no charge should be required for pre-paid card loading or unloading.

He explained that the current NIBSS Instant Payments (NIP) charges applied to use of Unstructured Supplementary Service Data (USSD), purchase with cash-back would attract a charge of N100 per N20,000 subject to cumulative N60,000 daily withdrawal.

The CBN spokesman noted that for cards linked to savings account, the maintenance fee had been reduced to a maximum of N50 per quarter from N50 per month amounting to only N200 per annum instead of N600.

The director hinted that there would be no more charges for reactivation or closure of accounts such as savings, current and domiciliary accounts while status enquiry at the request of the customer like confirmation letter, letter of non-indebtedness and reference letter would now attract a fee of N500 per request.

“On Current Account Maintenance Fee (CAMF), the guide expressly stated that this would be applicable only to current accounts in respect of customer-induced debit transactions to third parties and debit transfers and lodgments to the customer’s account in another bank.

“It emphasised that CAMF is not applicable to Savings Accounts.

“CBN carried out the review of the guide, which also prescribes charges permissible for Other Financial Institutions and non-bank financial institutions, in order to align with market developments.

Similarly, the CBN has directed banks and Other Financial Institutions (OFIs) to submit comprehensive plans for consumer protection, education and enlightenment on or before March 31, 2020.

The Director, Consumer Protection Department, CBN, Mr. Kofo Alada in a signed document posted on the apex bank the official website said, “Consequently, all regulated institutions are required to immediately develop internal policies to comply with the regulations and ensure approval by their respective Board of Directors.

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“They shall, therefore, forward the approved policies, which shall include comprehensive plans for consumer protection, education and enlightenment to the Director, Consumer Protection Department, CBN on or before March 31, 2020.”

According to him, the CBN issued the Consumer Protection Framework (CPF) on November 7, 2016, to enhance consumer confidence in the financial services industry and promote financially stability, growth and innovation.

“Further to the above, the CBN hereby issues the Consumer Protection Regulations to improve overall compliance with the CPF by banks, other financial and non-bank financial institutions (regulated institutions).

“The regulations prescribe far-reaching requirements on Fair Treatment of Consumers’; Disclosure and Transparency; Responsible Business Conduct; and Complaints Handling and Redress, in line with principles enunciated in the CPF.”

However, the guideline on Consumer Protection Regulations that was released during the weekend stated that its objectives are to protect consumers from unfair and exploitative practices by Institutions in their dealings with the consumer and protect bank’s customer from unethical and predatory practices that undermine consumer confidence in the use of financial products and services.

Other objectives include protect the customer against the provision of inadequate and misleading information and/or failure to disclose material information; by ensuring access to complaint redress mechanisms that are free, fair, timely, transparent, accessible and independent; and by encouraging transparency of Institutions in their dealings with consumers.

On data protection and privacy, the CBN’s guideline said: “To ensure data protection and privacy of consumers, Institutions shall: Protect the privacy and confidentiality of consumer information and assets against unauthorized access, and be accountable for acts or omissions in respect thereof.

“Obtain the written consent of consumers to collect and process their personal data for specific purpose and provide them with the option to withdraw the consent at any time,” the guideline explained on data protection and privacy.