Regulatory Alerts2014-06-12 | FPR/DIR/GEN/CIR/01/008Implementation of the Revised Guide to Bank Charges-Commission on Turnover
The Central Bank of Nigeria (CBN) has issued a circular reminding banks that the maximum Commission on Turnover (COT) for 2014 is N2 per mille, as part of the Revised Guide to Bank Charges. Any excess COT charged since the effective date of the guide should be refunded within thirty days. Additionally, the CBN requires banks to seek prior approval before charging fees not listed in the guide or imposing additional fees on accounts. Failure to comply with these guidelines may result in mandatory refunds.
tion Department 09-462-17402 E-mail: fprd@cbn.gov.ng JUNE 11, 2014 REF: FPR/DIR/GEN/CIR/01/008 CIRCULAR TO ALL DEPOSIT MONEY BANKS IMPLEMENTATION OF THE REVISED GUIDE TO BANK CHARGES- COMMISSION ON TURNOVER It will be recalled that the CBN, in conjunction with the Bankers' Committee, issued the Revised Guide to Bank Charges (the Guide) on March 27, 2013. The Guide sought to standardise charges for various products and services offered by banks. Section 3.1 of the Guide provides that Commission on Turnover (COT) is negotiable subject to a maximum of N3 per mille in 2013; N2 per mille in 2014; N1 per mille in 2015; and that no COT would be charged from 2016. Information available to the CBN indicates that some banks are still charging COT at the rate of N3 per mille - which was the agreed rate for 2013.
The CBN hereby reiterates that the maximum COT allowed by the Guide for 2014 is N2 per mille. Consequently, all banks that have charged excess COT since the effective date of the Guide are hereby required to refund same to the affected customers not later than thirty (30) days from the date of this circular. Our attention has also been drawn to the practice, by some banks, of charging fees which are alien to the Guide. For example, some banks offer accounts that are supposedly COT-free but Impose a maintenance or similar fee - a fee not covered by the Guide.
For the avoidance of doubt, while Paragraph 4 of the Preface to the Guide states that the charges on products and services are not exhaustive, it however requires banks wishing to levy charges not covered by the Guide to obtain the prior approval of the CBN. Banks that have charged customers maintenance fee (or any fee for that matter), that is neither covered by the Guide nor has been prior-approved by the CBN, are hereby required to refund the fee to the customers not later than thirty (30) days from the date of this circular.
Thank You.
FRANKLINE. AHONKHAI FOR: DIRECTOR, FINANCIAL POLICY AND REGULATION DEPARTMENT