Senate to probe illicit, excessive charges by banks – ORDER PAPER

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OrderPaperToday – Following continued complaints of illicit and excessive charges by commercial banks, the Senate has tasked its Committee on Banking, Insurance and other Financial Institutions to investigate the matter.

The committee is also asked to look into the possibility of a downward review of all charges on the bank accounts in the country.

The resolutions were reached sequel to a motion sponsored by Senator Abba Moro (PDP, Benue South) on Wednesday.

 

Infographic showing a flurry of excessive charges by banks
Bank charges

In his presentation, Moro noted that these charges include bank SMS charges, intra-bank transfer charges in the sum of N52.59 Kobo, ATM Card renewal charges, and account maintenance charges in the sum of N93.13 kobo.

He recalled that in April 2017 the Central Bank of Nigeria (CBN) revised the card maintenance charge from N100 annually to N50 monthly.

“According to the Nigeria Inter Bank Settlement System (NIBSS), the central data base for banking transactions in the country showed that as at September 30, 2016, there were 29.4 million active cards being used by the 63 million active bank customers.

“Thus, bank customers in Nigeria will pay not less than N1.462 billion to banks as card maintenance charges every month, totaling about N17.544 billion in a year,” Moro said.

He queried the rationale behind the deduction noting that the banks in other climes do not charge the same manner.

“Nigerian banks in a bid to further extort customers have set most of their ATM machines to dispense cash below the maximum sum of N40,000 that ATMs are programmed to dispense per transaction.

“Thus customers using the Automated Teller Machines (ATM) do not have a choice than to withdraw much lesser amounts per transactions thereby incurring additional cost of N65 Naira per transaction after using another Bank’s ATM machines beyond three times”, he added.

However, this is not the first time the senate is seeking to intervene on bank charges. In 2018, the previous senate resolved to probe banks on the issue of charges. Nothing came out of that exercise eventually.

Also in February this year, the House of Representatives queried banks over same issue.

Read the original article HERE

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