CBN Calls For Reduction In Bank Charges

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The Central Bank of Nigeria (CBN) has called on banks and other financial institutions to reduce the cost of providing banking services to their customers, especially the underbanked and unbanked within the society.

CBN’s Director, Payment System Management Department, Musa Jimoh made the call at the Hope Payment Service Bank opening in Lagos.

He described the cost of providing banking services to customers as ‘too high’ while affirming that the apex bank will be monitoring the new entrants into the banking sector- Payment Service Banks- and assess the rate at which they offer their services to customers after six months of operation.

According to him, the Payment Services Banks (PSBs) were approved by the CBN to enhance access to financial services for low income earners and unbanked segments of the market at the grassroots through digital services.

Jimoh said that affordability of banking services is very key, and that banks should think of ways to reduce their cost to serve.

He said: “Nigerians should afford banking services. The cost of providing banking services is too high. I would want a situation where the unbanked and underbanked can afford the services that the Payment Service Banks will be providing. In a year or six month time I will come back to see how whether the banks have make their cost to serve affordable to the underbanked and unbanked”.

It will be recalled that the CBN had on January 1, 2020 unveiled new regime of banking charges to customers.

The apex bank had instructed banks to slashed withdrawal fees usually charged after the third withdrawal from Automated Teller Machines (ATM) within the same month.

Card maintenance fee was also reviewed to N50 every three month (quarterly), from the initial monthly period. The guide released by the CBN contains major changes on electronic transactions’ charges in Nigeria.

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