Banking in Nigeria comes with a lot of problems for many. There are several complaints of unprofessionalism and other ills. However, one of the major problems customers complain about are hidden bank charges.
In January 2016, it was announced that in a bid to generate revenue for deposit money banks, the Central Bank of Nigeria (CBN) introduced a maintenance fee on current account transactions.
This was revealed in a circular signed by Kevin Amugo, director, financial policy and regulation department of the CBN, dated January 20, 2016 and addressed to the commercial banks.
What are some bank charges you did not know about and what do they mean?
1. Maintenance Fee
The maintenance fee means that for every N100,000 leaving a current account in Nigeria, deposit money banks are permitted to take N100 for account maintenance.
2. Processing Fee
The processing fee is the fee banks charge for transactions across countries. For example If someone who lives in the US has just sent you $200 through your bank and the bank exchange rate is N319 to $1, they will subtract a $2 processing fee from the dollar amount.
After the bank subtracts the processing fee of 2 dollars from the dollar the total amount to be received is in Naira is N62,524.
3. ATM withdrawal charges
When you use an ATM that does not belong to your bank, there is usually a N65 charge after the first transaction in the month and subsequent other transactions you carry out.
4. ATM card maintenance fee
This is peculiar to some banks, but it has been revealed that some of them charge for ATM card maintenance on an annually basis.
NAIJ.com earlier reported that the Central Bank of Nigeria (CBN) introduced a new policy on cash-based transactions which stipulates a cash handling charge on daily cash withdrawals that exceed N500,000 for individuals and N3,000,000 for corporate bodies.
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The new policy on cash-based transactions (withdrawals) in banks, aims at reducing the amount of physical cash (coins and notes) circulating in the economy, and encouraging more electronic-based transactions (payments for goods, services, transfers, etc.)
Watch this NAIJ.com video as Nigerians speak on receiving mistaken bank alerts: