Central Bank of Nigeria, CBN has said that it wants to introduce a negotiable current account maintenance fee in the banking sector to replace Commission on Turnover, COT that bank customers were relieved of this January.
Information obtained from the CBN website yesterday signed by the Director, Financial Policy and Regulation Department Kevin Amugo explained that the move was to ensure system stability in the banking sector because of the volatile economic environment in the country.
It would be recalled that during the 311 Bankers Committee meeting of February 12, 2013, CBN and deposit money banks, DMB jointly agreed on zero COT regime that commenced January 2016 in furtherance of the mandate to promote and safeguard a sound financial system in Nigeria and banks.
CBN however, noted that it is not oblivious of the impact of declining crude oil prices; operation of Treasury Single Account TSA and other market turbulences on the viability and stability of the banking system, hence decided to create the Negotiable Current Account
maintenance fee.
According to him, “in the interest of stability of the banking system, a Negotiable Current Account Maintenance fee not exceeding N1.00 per mile may be charged in respect of all customers induced debit transactions.”
“The revised Guide to Bank Charges RGBC, which came into effect on April 1 2013, provides for a phased elimination of Commission on COT charges in the Nigerian Banking Industry. Under the Guidelines a zero COT regime was to come into effect from January 2016.”
Apex bank also decried 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.

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