CBN reviews bank charges, to phase out COT by 2016

Nine years after, the Central Bank of Nigeria CBN, has on Thursday published a revised guide to bank charges first issued in 2004 to provide standard application of charges in the industry, while minimizing bank-customer conflicts.

The review undertaken with imputes from stakeholders including members of the Bankers’ Committee, the apex bank said in a circular by IT Nwaoha, acting director, Financial Policy and Regulation Department, became necessary “in order to reflect current developments in the market and provide clarity on banking terms.”

Among others, the document approves, with effects from Monday, April 1, 2013, a N100 annual debit card maintenance charge; while hinting of a gradual phase-out of commission on turnover from this year, until 2016 when it customers’ accounts will no longer be debited for transactions on current accounts.

For now, banks are to charge no more than “N3 per mille” this year as COT; N2 in 2014; and N1 in 2015; before moving to zero COT from 2016, the CBN said in the document.

In addition, “the banks should not charge COT on returned outward clearing cheques, reversal of transactions and all bank-induced debts.”