Following the recent downward review of fees related to electronic transfers and Automated Teller Machine (ATM)/card maintenance fees by the Central Bank of Nigeria (CBN), the Minister of Communications and Digital Economy, Dr. Isa Ali Ibrahim Pantami has commended the move as a means of achieving a digital economy.
While encouraging all decision making institutions in the country to enact policies that will support and key into the Digital Economy policy of President Muhammadu Buhari, Dr. Pantami applauded the directive from the regulator of the financial sector.
A statement signed by the Spokesperson to the Honourable Minister, Mrs. Uwa Suleiman emphasized: “This will in no small measure contribute to the actualization of a Digital Economy, as lower service charges will encourage higher patronage of electronic services, especially in the banking and financial services sector.”
It will be recalled that the CBN recently released a statement announcing a downward review of charges placed on Nigerians for the maintenance of Automated Teller Machines (ATM) cards and the fees for electronic financial transactions.
The new charges were contained in the Apex bank’s ‘Guide to Charges by Banks and Other Financial Institutions’.
According to the changes made by the CBN, bank customers will henceforth pay N10 for each electronic transfer below N5,000, and N25 for electronic transfer between N5,000 and N50,000. Electronic transfer above N50,000 will be at the cost of N50.
The new rule takes effect from Wednesday, January 1, 2020.
The review also reduces the charge for withdrawals through other bank’s ATMs from N65 to “maximum of N35 after the third withdrawal within the same month.”
Explaining further, the CBN Director, Corporate Communications, Mr. Isaac Okorafor said that the current NIBSS Instant Payment (NIP) charges apply to use of Unstructured Supplementary Service Data (USSD), and that purchase with cash-back will attract a charge of N100 per N20,000 subject to cumulative N60,000 daily withdrawal.
For cards linked to Savings Accounts, the N50 monthly maintenance fee has been reduced to a maximum of N50 per quarter.
The Apex bank also declared that there will be no more charges for reactivation or closure of accounts such as savings, current and domiciliary accounts while status enquiry at the request of the customer, such as confirmation letter, letter of non-indebtedness and reference letter, will now attract a fee of N500 per request.
On Current Account Maintenance Fee (CAMF), the Guide notes that this would apply only to current accounts in respect of customer-induced debit transactions to third parties and debit transfers/lodgments to the customer’s account in another bank. It emphasized that CAMF does not apply to Savings Accounts.