IN a bid to enhance friendlier banking services, financial inclusion and transparency across the Nigerian financial system, the Central Bank of Nigeria (CBN) on May 1, this year, introduced new guide to charges by banks and other financial institutions.
ACCORDING to the guide, reactivating or closing of account is free of charge; receiving of monthly statement of account
is now cost-free, special requests for electronic statements for personal use are also free of fees. However, special request for printed statement of account, request in a manner other than agreed on mandatory issuance has been pegged at a maximum of N20 per page.
TO encourage micro-payments and digital adoption, the CBN has eliminated fees for small electronic fund transfers. Transactions between N0 and N5, 000 now carry no charge. For transfers between N5, 000 and N50, 000, the fee is capped at a low rate of N10. There is no charge for the withdrawal using your own bank’s ATM. Performing non-cash transactions such as intra-bank transfers at these ATMs is also free. The new guide ensures that virtual cards are issued at no charge, while common security maintenance tasks like PIN re-issues or PIN resets are now free services for all customers.
WE commend the CBN for the shift from aggressive monetary tightening to more growth-oriented and consumer-friendly policies.
HOWEVER, we appeal for a reduction in the benchmark Monetary Policy Rate, which has hovered around 27.5%, to make commercial loans more affordable and downward review of the Cash Reserve Ratio (CRR), freeing up more liquidity for banks to lend to Small and Medium-sized Enterprises.
THERE is also the need for a level regulatory playing field that supports smaller digital lenders and payment service providers without stifling them with prohibitively high capital thresholds.
CONSUMERS demand stricter enforcement against hidden bank charges and clearer communication on loan terms.
THERE is also need for more robust enforcement of the CBN’s Consumer Protection Regulations to ensure failed transactions and wrongful debits are reversed and resolved swiftly.
THE CBN is also expected to further simplify account opening processes so that rural populations and the informal sector can easily access basic financial services.