Current account holders to pay N1 on any N1, 000 transaction

In from Success Allantee . . . .

In what appeared to be a back-door return of the Commission on Turnover (COT), the Central Bank of Nigeria (CBN) has given the go ahead to banks to introduce a Negotiable Current Account Maintenance Fee not exceeding N1 per N1000 charged in respect of all customer induced debit transactions.

The CBN said it was not oblivious of the impact of current market turbulences on the stability of the banking system. The banking system is expected to implement zero COT regime this year.

In a circular signed by Kevin Amugo, director, financial policy and regulation department of the CBN, dated January 20 and addressed to the commercial banks, the apex bank stated, that the N1 per N1,000 charge will help to cushion the impact of declining crude oil prices, the operation of the Treasury Single Account and overall hostile market activity.

There has been a progressive reduction in Commission on Turnover (COT) from N5 per N1000 to N3 per N1000 in 2013, N2 per N1000 in 2014, N1 per N1000 in 2015 and zero COT in 2016.

Read also: N50 Stamp Duty: ‘Salary accounts not covered’

According to the CBN circular, “The revised guide to bank charges (RGBC) which came into effect on April 1, 2013 provides for a phased elimination of commission on turnover (COT) charges in the Nigerian banking industry, under the guidelines, a zero COT regime was to come into effect from January 2016”.

The CBN said it noted that while COT was gradually phased out, some banks began charging maintenance fee in addition to COT. The bank said it was also aware of the impact of dwindling oil prices, Treasury Single Account (TSA) and other market turbulence.

“In the interest of stability, of the banking system, a negotiable current account maintenance fee not exceeding N1.00 per mille (1/N1,000) may be charged in respect to all customer induced debit transaction”, CBN directed.

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