In a recent interview with Newsmen, Mr. Okechukwu Unegbu, a renowned financial expert and former president of the Chattered Institute of Bankers of Nigeria (CIBN), has appealed to the Central Bank of Nigeria (CBN) to address the issue of excessive service charges imposed by Deposit Money Banks (DMBs).
Unegbu expressed concerns about the lack of empathy shown by banks towards their customers, a stark departure from the past.
Unegbu emphasized that many DMBs burden their customers with numerous unexplained charges without offering adequate services in return.
He further criticized the lack of banking knowledge among some bank officials and held the heads of banks accountable for this situation.
Unegbu advised the acting CBN governor, Folashodun Shonubi, to prioritize understanding the dynamics between DMBs and their customers and take decisive action to regulate their activities.
The financial expert emphasized that the primary mission of any bank should be to serve customers without expecting any undue favors.
In the past, the only charges banks imposed on customers were the Commission on Turnover (COT) and interest payments on loans, both of which were strictly regulated by the CBN.
However, Unegbu highlighted that banks are now cleverly extracting additional revenue, often prioritizing profit over customer satisfaction.
The CIBN has consistently addressed this issue, advocating for banks to serve their customers conscientiously.
Numerous Nigerians have voiced their complaints regarding the unexplained deductions from their bank accounts, further highlighting the urgency of this matter.
It is important to note that the CBN has approved specific bank charges, including N50 for Electronic Funds Transfer transactions above N50,000, N25 for transactions between N5,000 and N50,000, and a N10 charge for transactions below N5,000.
Additionally, there is a charge of N35 for the third withdrawal within the same month from other banks’ ATMs, and Naira Debit/Credit Cards linked to savings accounts attract a maximum quarterly maintenance fee of N50, while foreign currency denominated debit/credit cards attract a fee of 10 dollars.
The CBN has clarified that charges for services such as hardware token are subject to cost recovery, with a maximum charge of N2,500.
The issuance fee for cards is a one-off charge of N1,000, regardless of card type, and the same applies to replacements or renewals.
Intra-Scheme Money Transfers to an account holder attract a minimum charge of N50 or 1% of the transaction value, whichever is lower.
For non-account holders, the charge is a minimum of N50 or 1.5% of the transaction value, whichever is lower.
Other approved charges include N500 per request for Status Enquiry at the Request of Customer, and the fee for Short Message Service (SMS) mandatory alerts is based on cost recovery, with a maximum charge of N4.
Bill payment via e-channels carries a maximum charge of N500 or 0.75% of the transaction value, up to a maximum of N1,200.
Special requests for a Statement of a Bill of account incur a fee of N200.
The CBN has sternly warned that any financial institution found to be in violation of the prescribed guidelines will face a penalty of N2 million per infraction or as determined by the CBN.
Bank customers who have complaints regarding these charges are encouraged to contact the CBN via email at cpd@cbn.gov.ng.
