Bank Customers To Pay N17.54bn As Card Maintenance Charges

Bank customers in Nigeria will pay not less than N1.462 billion to
banks as card maintenance charges every month totaling N17.544 billion
in a year beginning from May 2017, as the revised Guide to Bank Charges
take effect from this month.
The Central Bank of Nigeria (CBN) had revised the card maintenance
charges in the new guide which was released last month from N100
annually to N50 monthly. This means every debit or credit card holder
will pay N600 annually as against the N100 being paid previously.

According to data released recently by the Nigeria Inter Bank
Settlement System (NIBSS) the central database for banking transactions
in the country show that as at September 30, 2016, there are 29.24
million active cards being used by the 63 million active bank customers.

The new Guide to Bank Charges stipulates that banks charge N50
monthly as card maintenance fee on naira debit and credit cards, while
foreign currency denominated debit and credit cards would be charged $20
or its equivalent on an annual basis.
Charges for new hardware token and for replacement was increased from
N2500 to N3,500, while one time soft token is to attract a SMS charge of
N4 compared to N20 that was being charged by some banks.

It however left the rate for acquiring new debit and credit card,
renewal or replacement of the cards at a one off charge of N1,000, while
not-on-us, which is withdrawal from other banks Automated Teller
Machines (ATM), would attract a charge of N65 after the third withdrawal
within a month.

The new charges however favour electronic transfers as the charges
for online transfers between two banks were cut from N100 to N50. Before
now, interbank transfers either through the mobile banking application
or internet banking attracts a N100 charge and N5 Value Added Tax. This
has however been cut down. The amount to be paid for printing of account
statement was also cut down from N50 per page to a maximum of N20 per
page.
Bank customers led by Consumer Advocacy Foundation of Nigeria (CAFON)
had last year protested excessive bank charges. CAFON launched a
campaign against the introduction of Stamp Duty charge of N50, Current
Account Maintenance Fee and excessive bank charges, calling on bank
customers to boycott all banking services in March last year.

Founder of the group, Sola Salako told LEADERSHIP that, “It looks
like the CBN is insensitive to the plight of Nigerians who are already
complaining that charges are excessive. Why should they add to the
charges? If they are trying to encourage a cashless Nigeria, why would
they now make it more difficult and expensive to do transactions?”
The CBN recently suspended the nationwide implementation of the cash
less policy which was to take effect from April 1, 2017. The apex bank
also directed banks to revert to the old charges and refund customers
who had been debited.

According to the cashless policy banks were directed banks to charge
five per cent and 10 per cent on deposits and withdrawals above N40
million in the corporate category. The bank had fixed 1.5 per cent and
two per cent for deposits ranging from N500, 000 and N1 million in the
individual category.

But in the circular signed by the director, banking and payments
system department, CBN, Dipo Fatokun,  the existing policy before the
announcement of the new policy shall remain in place in Lagos, Ogun,
Kano, Abia, Anambra, Rivers and Abuja.
The CBN suspended the policy until further notice urging the banks to
“revert to the status quo ante. The old charges to be reverted to three
percent processing fee for withdrawals above N500,000 in the individual
category and five percent for withdrawals above N3 million.

“The new policy already applied effective April 1, 2017 as contained
in the circulars in reference above should be reversed and the old
charges be applied. All necessary refunds should be made accordingly,”
it added.

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