Explainer: Here are bank charges approved by CBN

Several Nigerians have complained about the multiple and bank charges being deducted from their accounts.

Over the weekend, some bank users took to Twitter to report the charges deducted from their accounts. One customer even complained of deductions dating as far back as 2018.

In December 2019, the Central Bank of Nigeria (CBN) reviewed downwards most charges and fees for banking services in its updated Guide to Charges by Banks, Other Financial, and Non-bank Financial Institutions which took effect from January 1, 2020.

Here are some of the approved bank charges

Electronic Funds Transfer

Before the review, the rate for electronic transfers’ transactions was N50 flat fee. But now, it’s N50 for transactions done above N50, 000, N25 for N5, 000 – N50, 000 and N10 charge for below N5, 000.

Automatic Teller Machines (ATM)

The charge on ATM withdrawals from other banks’ ATMs was reduced to N35 from N65 for the third withdrawal within the same month.

Card Maintenance Fee for Naira Debit/Credit Cards

Naira debit or credit cards linked to savings accounts attract a maximum of N50 quarterly maintenance fee while foreign currency denominated debit/credit cards attract $10 from $20.

The charge for hardware token is subject to cost recovery subject to a maximum charge of N2, 500. It was reduced from N3, 500.

Naira Debit /Card Charges

The issuance fee for these cards are N1, 000 (one-off charge) irrespective of the card type either regular or premium card. The same charge applies for a replacement or renewal.

Intra-Scheme Money Transfer

Sending to an account holder attracts a minimum of N50 subject to one percent of transaction value or N300, whichever is lower. While for a non-account holder, it attracts a minimum of N50 subject to 1.5 percent of transaction value or N500, whichever is lower.

Cashless Policy

For individual cash deposits, the rate is two percent for transactions above N500, 000 while cash withdrawal is three percent for transactions above N500, 000.

The rate for corporate cash deposit is three percent for transactions above N3 million while withdrawal is five percent for transactions N3 million.

Others are

Status Enquiry at the Request of Customer (e.g. Confirmation Letter, Embassy Letter, Reference Letter, Letter of Indebtedness/Non Indebtedness etc.) attracts a rate of N500 per request.

Fee for Short Message Service (SMS) mandatory alert is based on cost recovery from previous maximum charge of N4.

Bill payment via e-channels will attract a maximum charge of N500 from 0.75 per cent of the transaction value subject to a maximum of N1, 200.

Special Request for Statement of a Bill of account is N200

The CBN warned that any Financial Institution that breaches any of the provisions as contained in the guide will pay a penalty of N2 million per infraction or as may be determined by the CBN from time to time.