The Nigerian apex bank CBN has once again come to the aid of the common man by mandating the country's financial institutions and service providers to reduce their charges. This move affected all banks and other financial institutions. What do these changes entail?
The CBN Revised Bank Charges - Effective Immediately
The downward review affects three major classes of Bank charges:
1. Money Transfer Fees
Traditionally, banks charge N50 plus N2.50 VAT for all interbank funds transfer. Effective immediately, banks are now to take fees as follows:
Below N5,000 = N10 charge
N5,001 to N50,000 = N25 fee
Above N50,000 = N50 fee
This makes sense.
2. ATM Cash Withdrawal Fees
Before now, at the 4th ATM withdrawal from other banks than your card issuing bank, N65 charge per transaction applied in each month. There is now change as follows:
N35 after the 3rd withdrawal in the same month!
3. Card Maintenance Fee
Yes, as obtainable before now, you get monthly charge of N52.60 (inc. VAT) for card maintenance whether you use the card or not. There's change:
$10 per year on FX-denominated cards
Maximum of N50 per quarter on savings account only.
Zero (0) charges on cards linked to current account.
Observations:
We must agree that these are not all the charges customers pay in banks. But we need to appreciate the CBN for this moves. Customers will pay less fees for good service.
On the other hand, if we must care, we need also worry about banks' profitability if need be.
But as well established businesses, banks will know how to adjust and respond to these changes so that the going concern will not be threatened by these new regulations.
Do you agree these downward reviews are sufficient? How about stamp duty?
Please share.
The Nigerian apex bank CBN has once again come to the aid of the common man by mandating the country's financial institutions and service providers to reduce their charges. This move affected all banks and other financial institutions. What do these changes entail?
[b]The CBN Revised Bank Charges - Effective Immediately[/b]
[attachment=1]PhotoText-1578973453546.jpg[/attachment]
The downward review affects three major classes of Bank charges:
[b]1. Money Transfer Fees[/b]
Traditionally, banks charge N50 plus N2.50 VAT for all interbank funds transfer. Effective immediately, banks are now to take fees as follows:
Below N5,000 = N10 charge
N5,001 to N50,000 = N25 fee
Above N50,000 = N50 fee
This makes sense.
[b]2. ATM Cash Withdrawal Fees[/b]
Before now, at the 4th ATM withdrawal from other banks than your card issuing bank, N65 charge per transaction applied in each month. There is now change as follows:
N35 after the 3rd withdrawal in the same month!
[b]3. Card Maintenance Fee[/b]
Yes, as obtainable before now, you get monthly charge of N52.60 (inc. VAT) for card maintenance whether you use the card or not. There's change:
$10 per year on FX-denominated cards
Maximum of N50 per quarter on savings account only.
Zero (0) charges on cards linked to current account.
Observations:
We must agree that these are not all the charges customers pay in banks. But we need to appreciate the CBN for this moves. Customers will pay less fees for good service.
On the other hand, if we must care, we need also worry about banks' profitability if need be.
But as well established businesses, banks will know how to adjust and respond to these changes so that the going concern will not be threatened by these new regulations.
Do you agree these downward reviews are sufficient? How about stamp duty?
Please share.
