Bank Charges: CBN Reacts to Igbo Traders Petition Against Commercial Banks, List Correct Charges

• Igbo traders in a letter to the Central Bank of Nigeria raised alarm on excessive charges by commercial banks in Nigeria
• They argued that the majority of charges, deductions were illegal and wants the CBN to force the bank to stop
• CBN has responded asking the Igbo traders and Nigerians to resist unnecessary charges from commercial banks

The Central Bank of Nigeria (CBN) has reacted to the call by Igbo traders and Nigerians on bank charges imposed on them by Deposit Money Banks (DMBs).

According to CBN Nigerians Nigerians have the right to resist arbitrary, illegal bank charges and should not sit back until they are met.

However, CBN governor Godwin Emefiele wants bank customers to arm themselves with the guide to bank charges.

He noted that Nigerians should read its guide on bank operation very well, and resist any unlawful charges.

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Emefiele said:

“Go and read your Guide to Bank Charges, you should not allow any bank to just pass on any discretionary charges on your account that is not contained in the guide to bank charges”.

Emefiele also urged bank customers to carry the guide as they will carry any holy book the Nation reports.

Igbo traders had called on the CBN governor that depositors and other account operators with banks in Nigeria were suffering “unbearable” transaction charges.

Emefiele praise their gestures noting:

"If you find any bank charges that are not in the guide, raise an alarm. We have our Customer Protection Department, we have always advertised our own hotline d emails where you can always reach us”.

"Always talk to the bank to reverse the charge because it is not meant to be there you can also approach the banks with lawyers and accountants to effect a reversal of any illegal bank charges.

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List of CBN approved bank charges

A check on the CBN Guide to Bank Charges required that details of all fees and charges applicable to a transaction shall be disclosed to the customer at the point of consummation, (where applicable) and transaction receipt/alert/confirmation for any charge shall contain a description of the charge.

The guide also noted that for Electronic Funds Transfer the guide states that transfers below N5,000 will attract N10 charge, N5,001 – N50,000 will attract N25 and transactions above N50,000 will attract N50.

While for Current Account Maintenance Fee (CAMF) is applicable to current accounts ONLY in respect of customer-induced debit transactions to third parties and debit transfers/lodgments to the customer’s account in another bank.

The guide also noted that charges for CAMF are negotiable subject to a maximum of N1 per mille.

Penalities for banks

The guide also specifies penalties for banks that go against the dictates of the guide.

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It reads in part:

“financial Institutions are to note that any breach of the provisions of this guide carries a penalty of N 2,000,000 per infraction or as may be determined by the CBN from time to time”.

It also added that where a bank is found to have wrongfully imposed a particular charge on its customers, the provision of Section (i) 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 (CCMS) and must generate a unique reference code for each complaint lodged, which must be given to the customer.

Failure to log and provide the code to the customer amounts to a breach and is sanctionable with a penalty of N1,000,000 per breach."

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Also, a penalty of N100,000 imposed on a financial institution that contravenes the provisions of Part 6C

CBN spends N58.61billion to print 2.518 billion Naira notes

In a related story Legit.ng reported that the Central Bank of Nigeria has revealed it spent N58.61 billion printing Naira notes for circulation in the country.

According to CBN 2,51 billion pieces of banknotes of various denominations was printed to satisfy the currency needs of the economy.

The amount spent in 2020 for printing is a significant drop when compared with what CBN spent in 2019, 2018.

Source: Legit.ng