The Central Bank of Nigeria, CBN, has announced a review of bank charges designed to come into effect, April 1, 2013, increasing the amount charged for counter cheques to N200 per leaflet.
In a circular to all banks and discount houses, titled, ‘Revised Guide to Bank Charges,’ signed by Mr. I.T. Nwaoha, Acting Director, Financial Policy and Regulation Department, CBN, the CBN also announced a total removal of Commission on Turnover, COT, by 2016.
According to Nwaoha, overtime, it was observed that the various charges in the ‘Guide to Bank Charges,’ first issued in 2004, had become out of tune with current realities in the market and some provisions/term in it allowed room for ambiguity and conflict.
He said, “In order to reflect current developments in the market and provide clarity on banking terms, the CBN recently conducted a review of the Guide in consultation with all the banks and discount houses, Bankers’ Committee, financial experts/consultants and also considered inputs received from other stakeholders..”
With the new N200 charge per leaflet for counter cheques, a fifty-leaflet cheque book, which is the minimum issued in Nigeria, will cost N10,000.
In the area of COT, the CBN said it will be negotiable up to a maximum of N3 per mille in 2013; N2 per mille in 2014; N1 per mille in 2015 and COT free from 2016.
The CBN said COT applies to customer-induced debit transactions on current accounts, adding that banks should not charge COT on returned outward clearing cheques, reversal of transactions and all bank induced debits.