CBN Headquarters, Abuja
The Central Bank of Nigeria has ordered Deposit Money Banks to refund illegal fees charged customers over a period of one year.
The order, contained in a circular dated
June 12, was signed by the Director, Financial Policy and Regulation
Department, CBN, Mr. Franklin Ahonkhai.
Specifically, the central bank said some
banks had been overcharging customers on the Commission on Turnover in
the last few months, while some lenders had also imposed illegal
maintenance fees on the CoT-free accounts.
The CBN gave all the DMBs 30 days to refund the excess charges or face severe penalties.
The circular, posted on the central
bank’s website on Thursday, was titled, ‘Implementation of the revised
guide to bank charges -Commission on Turnover’.
The circular read, “It will be recalled
that the CBN, in conjunction with the Bankers’ Committee, issued the
revised guide to bank charges (the guide) on March 27, 2013. The guide
sought to standardise charges for various products and services offered
by banks.
“Section 3.1 of the guide provides that
Commission on Turnover is negotiable subject to maximum of N3 per mille
in 2013; N2 per mille (that is N1000) in 2014; N1 per mille in 2015; and
that no CoT will be charges from 2016. Information available to the CBN
indicates that some banks are still charging the CoT at the rate of N3
per mille, which was the agreed rate for 2013.”
The circular further stated, “The CBN
hereby reiterates that the maximum CoT allowed by the guide for 2014 is
N2 per mille. Consequently, all banks that have charged excess CoT since
the effective date of the guide are hereby required to refund same to
the affected customers not later than 30 days from the date if this
circular.
“Our attention has been drawn to the
practice by some banks of charging fees which are alien to the guide.
For example, some banks offer accounts that are supposedly CoT-free but
impose a maintenance fee or similar fee – a fee not covered by the
guide.”
Source: The Punch