CBN Slashes Charges On Electronic Transactions

*Issues framework to checkmate loan defaulters

The Central Bank of Nigeria (CBN) has announced a downward review of charges for electronic banking transactions; even as it moved at checking the spate of bad loans within the banking sector.

The apex bank made the disclosures in its revised guidelines to charges by Banks, Other Financial Institutions (OFIs) and Non-Bank Financial Institutions and operational guidelines on the Global Service Instructions (GSI) respectively.

In a Circular by the Director, Financial Policy and Regulation Department of the CBN, Chibuzor Efobi, stated that the review was in response to “further evolution in the financial industry in the last few years’’.

The apex bank explained that the new guidelines included a review of other bank charges to align with market developments and comprised inclusion of new sections on accountability/responsibility and a sanction regime to directly address instances of excess unapproved, (arbitrary) charges.

It added that the revised guidelines took effect from Jan.1.

It is worthy of note that the central bank has the mandate to issue the guide to bank charges, even as the guide provides a basis for the application of charges on various products and services offered by banks and other regulated institutions under the purview of the apex bank.

It would be recalled that the guide was first released in 2004 and revised in 2013 and 2017 due to market developments such as new innovations in products and channels, as well as new industry participants.

According to a statement by the Director, the initiative was conceived to address recurring instances of willful loan default in the industry.

Efobi said that the guidelines would enhance the establishment of a “watch list”; identify recalcitrant loan defaulters and enhance loan recovery from all eligible and funded accounts in the industry.