Good News: Banks Reduce CoT Charges By 40%

Google+ Pinterest LinkedIn Tumblr

After years of groaning by banks’ customers over arbitrary charges, the Bankers Committee, has approved the reduction of the Commission on Turnover charged current account holders from N5 on every N1,000 withdrawn to N3.

The approval of the reduction was announced after the committee’s meeting, which was held at the headquarters of the Central Bank of Nigeria on Tuesday in Abuja.

The committee also announced that Deposit Money Banks in the country have agreed to reduce all bank charges in order to enhance financial inclusion.

While briefing newsmen on the outcome of the meeting, the Managing Director of Access Bank Plc, Mr. Aigboje Aig-Imoukhuede, said that the committee will soon unveil the guidelines for the review of other bank charges.

He said the reduction became necessary since many people now use banking services owing to the financial inclusion strategy of the CBN. He however stressed that bank charges cannot be totally wiped out.

He said, “With financial inclusion, more and more people are using bank services and, therefore, more and more people are becoming used to the concept of bank charges and so on, which hitherto perhaps, did not use this service.

“So, working with the central bank, we are also going to come up with a new guide, but of course; bank charges cannot stop, especially when you are providing value, but they will come down.

“One of them, for example, is that in 2013, we are going to move from N5 per mill to N3 per mill on Commission on Turnover, and gradually that will continue to reduce.”

According to Aig-Imoukhuede, the committee had chosen Borno State for the pilot project of the financial inclusion strategy.

He said the state was chosen for a number of reasons, such as, the high poverty rate and insecurity situation in the state, the high number of women that have been financially excluded from banking services amongst others.

Aig-Imoukhuede also revealed plans to make available cheap credit to the people to boost agriculture in the state, adding that once the initiative succeeded in the state, it would be replicated in other parts of the country.

On the customer biometric project, the Managing Director, Zenith Bank Plc, Mr. Godwin Emefiele said the committee had fixed a take-off date of July for its commencement.

He said, “We discussed the customer identity management project at this meeting. We set up a committee last year comprising nine financial institutions on how to boost consumer credit to Nigerians.

“We do not have a databank where we can access the information of bank customers and we say setting up this committee will help build a database through a biometric project.”

According to him, the project will enable all bank customers to have a unique biometric identification number that will allow all the banks to see the information of the customer regardless of whether he has an account with them or not.

“Once you have that unique number and you go to bank ‘B’ from ‘A’ to open an account, once you just show that number, an account will automatically be opened for you,” Emefiele said.

He said owing to the unique number, it would be easy for banks to do businesses with their customers.

The Zenith Bank boss also said the cash-less policy, which was piloted in Lagos, would soon be extended to major cities in the country.

The Herald NG is a leading newspaper in Nigeria at the forefront of the digital revolution.

Leave a Reply

Leave a Reply