Banks to Charge N50 Monthly on Naira ATM Cards and $20 on FCY Cards from May 1

The Central Bank of Nigeria (CBN) has disclosed that from May 1, 2017, banks operating in the country can now charge N50 monthly from customers using the Naira debit/credit cards as maintenance fee.

The CBN made this disclosure in a circular titled ‘Guide to Charges by Banks and Other Financial Institutions in Nigeria 2017’ with reference number FPR/DIR/GEN/CIR/06/017.

You can Download the Circular here.

In the circular released on Friday and signed by its Director of Financial Policy & Regulation Department, Mr Kevin Amugo, Section 10.3 stats that banks can also charge $20 or its equivalent for similar service on foreign currency(FCY)  denominated debit/credit cards annually.

Mr Amugo, in the circular obtained by BTCNaira, explained that the Guide to Bank Charges issued in 2013 sought to reflect developments in the financial market, provide clarity on the banking terms, and reduce ambiguity in loan transactions.

However, he said the need to address the absence of a tariff regime for other financial institutions in Nigeria, enhance transparency in the operations of the guide, and align the provisions to current realities, have necessitated further review of the guide as clamored by a broad spectrum of stakeholders.

“The review was expanded to incorporate the concerns of both operators and users of financial services in Nigeria.

“The reviewed guide provides for charges on various products and services than banks, other financial institutions and mobile payment operators offer to their customers.

“Banks, other financial institutions and mobile payments operators are required to present any other product, service and/or charge not covered by the guide to the Central Bank of Nigeria (CBN) for prior written approval.

“The guide to is hereby issued and takes from May 1, 2017. It replaces Guide to Bank Charges that came into effect on April 2013,” Mr Amugo said.

He said for electronic funds transfer, the CBN has approved N50 fee for transaction below N10 million, same with transactions above N10 million.

The apex bank also retained the N65 for ATM transactions after the third withdrawal within the same month on other banks’ ATM.

It also said banks should not charge more than N1000 (one-off) for ATM debit/credit card issuance, same rate for replacement and renewal.

Concerning transaction alerts, banks should not charge “not more than N4/SMS. (Fees on alerts are restricted to only customer-induced transactions),” warning that “all associated notifications relating to a particular transaction should be consolidated into a single SMS alert.”

It explained that “where a customer opts not to receive SMS alert, the customer should issue an indemnity (for losses that may arise as a result) to the bank.”

The CBN said for Current Account Maintenance Fee (CAMF), such can be “negotiable subject to a maximum of N1 per mille.”

It explained that this 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.

However, the CAMF is not applicable to Savings Accounts.

The circular said for Savings Account, the interest rate would be a minimum of 30 percent (MPR p.a.), but not applicable if a customer makes more than four withdrawals in a month.