CBN Caps Transaction Alert Fees to N4 per SMS

19 May 2017

Money Transfer

The Central Bank of Nigeria (CBN) has capped the fees charged by the banks on transaction alerts to N4 per SMS. The apex bank also restricted alerts to customer-induced transactions only.

The CBN directed the banks to consolidate into one single SMS alert all associated notifications relating to a particular transaction. However, SMS alert are mandatory.

“However, where a customer opts not to receive SMS alert, the customer should issue an indemnity for losses that may arise as a result to the bank,” the apex bank ruled.

The new tariff regime takes effect from May 1, 2017. The new fee is contained in the “Guide to Charges by Banks and Other Financial Institutions” released by the CBN.

The Director of Financial Policy and Regulation Department at the CBN, Kevin Amugo, said the charges came after extensive consultation with stakeholders.

“The aim of the guide is to enhance flexibility, transparency and competition in the Nigerian banking industry,” he noted.

Amugo explained that, “where a charge is stipulated as “negotiable”, banks and other financial institutions are required to draw the attention of customers to their rights to negotiate and the two parties are required to mutually agree on the applicable interest and/or charge via a verifiable means.”

Although the Guide provides for charges on various products and services of the banks and other financial institutions, it is inexhaustive. The banks and other financial institutions are required to present any new product, service or charge not covered by the guide to the CBN for prior written approval.

Source: Financial Technology