CBN Introduces Current Account Holders Maintenance Fee in banking operation
The Central Bank of Nigeria (CBN) has introduced a Negotiable Current Account Maintenance Fee (NCAMF) of not more than one naira per mile, in circular No FPR/DIR/GEN/CIR/01/003 dated January 20, 2016.
In a circular statement signed by Kevin N Amugo, Director, financial policy and regulation department of CBN and pasted on its website.
The circular saying the CBN introduced the NCAMF in recognition of the impact of the sustained decline in crude oil prices, the implementation of the Federal Government’s policy on Treasury Single Account (TSA) and other macro-economic headwinds on the viability and stability of the banking system in Nigeria.
Following the complete elimination of Commission on Turnover (COT) with effect from January 1, 2016, CBN noted that some banks continued to charge both COT and Account maintenance charges in the build-up to the zero COT regime, amounting to double charges. Diamond Bank complied fully with the phased elimination of COT and there were no instances of hidden or double charges in that respect.
Please note that the NCAMF applies only to customer-induced debit transactions.
“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 signed during the 31st 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 N1.00 per mile may be charge in respect of all customers induced debit transactions.”