Regulatory Alerts2016-01-21 | FPR/DIR/GEN/CIR/01/003Introduction of Negotiable Current Account Maintenance Fee Not Exceeding N1/Mile
The Nigerian Central Bank (CBN) has enforced a zero Commission on Turnover (COT) regime in the banking industry since January 2016, as agreed upon at the 311th Bankers' Committee meeting. To maintain financial stability, banks are allowed to charge a maximum of N1 per mille for Negotiable Current Account Maintenance Fee on all customer-induced debit transactions, effective from the same date. Strict compliance is required.
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E-mail: fprd@cbn.gov.ng FPR/DIR/GEN/CIR/01/003 January 20, 2016 Circular to all banks INTRODUCTION OF NEGOTIABLE CURRENT ACCOUNT MAINTENANCE FEE NOT EXCEEDING #1/MILLE The Revised Guide to Bank Charges (RGBC) which came into effect on April .1, 2013 provides for a phased elimination of Commission on Turnover (COT) charges in the Nigerian Banking Industry. Under the Guidelines, a zero COT regime was to come into effect from January 2016.
The CBN noted that while the gradual phase out was being observed, some banks continued to charge Account Maintenance Fees in addition to the reduced COT Rate, which in effect amounted to double coincidence of charges. The CBN is not oblivious of the impact of declining crude oil prices; operation of Treasury Single Account; and other market turbulences on the viability and stability of the banking system.
In furtherance of the mandate to promote and safeguard a sound financial system in Nigeria, banks are by this circular reminded that the 2016 zero COT regime as jointly agreed during the 311th Bankers' Committee meeting of February 12, 2013 has come into effect. In the interest of stability of the banking system, a Negotiable Current Account Maintenance Fee not exceeding #1.00 per mille may be charged in respect of all customer induced debit transactions.
Please ensure strict compliance.
KEVIN N. AMUGO DIRECTOR, FINANCIAL POLICY & REGULATION DEPARTMENT