Transcription
THE GUIDE TO CHARGES BY BANKS,OTHER FINANCIAL AND NON-BANKFINANCIAL INSTITUTIONSJANUARY 1, 2020
PREFACEThe “Guide to Charges by Banks, Other Financial and Non-Bank Financial Institutions” (theGuide) provides a basis for the application of charges on various products and services offeredby Financial Institutions in Nigeria to their customers. This document applies to all financialinstitutions licensed and/or regulated by the Central Bank of Nigeria.The charges prescribed in the Guide were arrived at after extensive consultations withstakeholders. The intendment of the Guide is to enhance flexibility, transparency andcompetition in the Nigerian banking industry.Where a charge is stipulated as “negotiable”, financial institutions are required to draw theattention of customers to their rights to negotiate and the two parties are required to mutuallyagree on the applicable charge via a verifiable means.Although the Guide provides for charges on various products and services of financialinstitutions, it is not exhaustive. Financial Institutions are required to present any new product,service or charge not covered by this Guide to the Central Bank of Nigeria for prior writtenapproval.A glossary of terms is provided to define/explain the terminologies used in the Guide.This Guide, which replaces the Guide to Charges by Banks and Other Financial Institutions issuedin 2017, takes effect from January 1, 2020, and may be reviewed from time to time to reflectchanges in the business environment.PAGE LEFT BLANK FROM THIS POINTPage 2 of 75
TABLE OF CONTENTSPREFACE 2TABLE OF CONTENTS 3PART 1: Accountability and Responsibility 5PART 2: BANKS 6SECTION 1: INTEREST ON DEPOSITS 7SECTION 2: INTEREST RATES AND LENDING FEES 8SECTION 3: CURRENT ACCOUNT MAINTENANCE FEE 11SECTION 4: COMMISSION ON BONDS GUARANTEES & INDEMNITIES, ETC. 12SECTION 5: FOREIGN EXCHANGE COMMISSION/CHARGES 13SECTION 6: BILLS FOR COLLECTION 14SECTION 7: STRAIGHT FORWARD HANDLING OF DOCUMENTS 15SECTION 8: INWARD AND OUTWARD LETTERS OF CREDIT 16SECTION 9: INTERNAL TRANSACTIONS (WITHIN NIGERIA) 18SECTION 10: ELECTRONIC BANKING 20SECTION 11: MISCELLANEOUS 23SECTION 12: SANCTIONS 26PART 2:OTHER FINANCIAL INSTITUTIONS 27PART 2 (A): MICRO-FINANCE BANKS 28SECTION 1: INTEREST ON DEPOSITS 29SECTION 2: INTEREST RATES AND LENDING FEES 30SECTION 3: CURRENT ACCOUNT MAINTENANCE FEE 33SECTION 4: COMMISSION ON GUARANTEES & INDEMNITIES 34SECTION 5: INTERNAL TRANSACTIONS (WITHIN NIGERIA) 35SECTION 6: ELECTRONIC BANKING 36SECTION 7: MISCELLANEOUS 39PART 2 (B): PRIMARY MORTGAGE BANKS 42SECTION 1: INTEREST ON DEPOSITS 43SECTION 2: INTEREST RATES AND LENDING FEES 44SECTION 3: CURRENT ACCOUNT MAINTENANCE FEE 46Page 3 of 75
SECTION 4: ELECTRONIC BANKING 47SECTION 5: MISCELLANEOUS 50PART 2 (C): FINANCE COMPANIES 53SECTION 1: INTEREST ON BORROWINGS 54SECTION 2: INTEREST RATES AND LENDING FEES 55SECTION 3: MISCELLANEOUS 57PART 3: MOBILE MONEY OPERATORS 58SECTION 1: AGENT-INITIATED TRANSACTIONS 59SECTION 2: SELF-SERVICE, CUSTOMER INITIATED TRANSACTIONS 60SECTION 3: OTHER TRANSACTIONS 61PART 4 – GLOSSARY 62PART 5 - MINIMUM DISCLOSURE REQUIREMENTS IN OFFER LETTERS FOR CREDITFACILITIES/LOANS 67GENERAL REQUIREMENTS 68CONSUMER LOANS 70MORTGAGE LOANS 72OVERDRAFTS 74MINIMUM DISCLOSURE REQUIREMENTS FOR CONTINGENT LIABILITIES 75PAGE LEFT BLANK FROM THIS POINTPage 4 of 75
PART 1: ACCOUNTABILITY AND RESPONSIBILITYPAGE LEFT BLANK FROM THIS POINTi.The Executive Compliance Officers (ECO) shall monitor compliance with therequirements of this Guide and shall be held liable for any breach.ii.The Head, Information Technology Division shall ensure that the name of all systemrelated/generated/posted charges shall conform strictly to this Guide.iii.The Head, Information Technology Division shall render monthly report attaching aschedule of all failed transactions on e-channels (ATM, PoS, mobile, web/internet andrelated channels) that originate or terminates in his bank, to the Director, PaymentsSystem Management and Consumer Protection Departments of the CBNiv.Details of all fees and charges applicable to a transaction shall be disclosed to thecustomer at the point of consummation (where applicable).v.Transaction receipt/alert/confirmation for any charge shall contain a description of thecharge.Page 5 of 75
PART 2: BANKSPAGE LEFT BLANK FROM THIS POINTPage 6 of 75
SECTION 1: INTEREST ON DEPOSITSDESCRIPTIONRATE1.1Current Account in CreditBalanceNegotiable11.2Savings AccountMinimum of 30% of MPR p.a. (not applicable ifa customer makes more than 4 withdrawals ina month)1.3Term Deposit AccountsNegotiableDomiciliary Accounts:1.41.4.1Current AccountsNegotiable21.4.2Savings AccountsNegotiable3Deposits held as collateral1.515.1 Naira DepositNegotiable subject to minimum of 30% of MPRp.a.1.5.2 Foreign CurrencyDepositNegotiablePAGE LEFT BLANK FROM THIS POINT1The responsibility for initiating the negotiation of interest shall be at the instance of the customer2The responsibility for initiating the negotiation of interest shall be at the instance of the customer3The responsibility for initiating the negotiation of interest shall be at the instance of the customerPage 7 of 75
SECTION 2: INTEREST RATES AND LENDING FEESDESCRIPTIONRATEInterest Rate[1]:2.1.1 Local Currency Loans2.1.2 Mortgage Financing2.1.3 Interest Rate - ForeignCurrency Loans2.1.4 Interest on AuthorizedODNegotiable (the rate should anchor MPR, reflectingthe risk-based pricing model). Also, when a bankintends to introduce a new rate different from theagreed rate, the bank should notify its customers ofthe new rate at least 10 business days in advanceof the application of the new rate.NegotiableNegotiableNegotiable (the rate should anchor MPR, reflectingthe risk-based pricing model). Also, when a bankintends to introduce a new rate different from theagreed rate, the bank should notify its customers ofthe new rate at least 10 business days in advanceof the application of the new rate.2.12.1.5 Unauthorized OD/CreditNot permissible except as a result of facilityrepayment (where it occurs, Penal Rate asprovided in Section 2.1.9 shall apply)2.1.6 Drawing againstUncleared EffectsNegotiable (the rate should anchor MPR, reflectingthe risk-based pricing model).2.1.7 Equipment LeasingNegotiable (the rate should anchor MPR, reflectingthe risk-based pricing model). Also, when a bankintends to introduce a new rate different from theagreed rate, the bank should notify its customers ofthe new rate at least 10 business days in advanceof the application of the new rate.2.1.8 DiscountableInstruments e.g. Usance bill,Bankers' Acceptance,Commercial Papers,Promissory Notes etc.NegotiablePage 8 of 75
DESCRIPTION2.1.9 Penal Rate4Penal rate is in respect of pastdue loans & advances,including excess overauthorized OD/credit limit(which may arise from 2.1.5)RATENaira loans and advances: Maximum of 1% flat permonth of unpaid amount in addition to chargingcurrent rate of interest on outstanding debt(without prejudice to the provisions of thePrudential Guidelines on the limitation of accruals)Foreign currency loans and advances: Maximumof 0.25% flat per month of unpaid amount inaddition to charging current rate of interest onoutstanding debt (without prejudice to theprovisions of the Prudential Guidelines on thelimitation of accruals).Lending FeesNB: Total lending fees shallnot exceed 2 per cent2.2.1 Management Fee5covering processing,appraisal, ancillary and otherrelated fees on a new loanapplication (one-off charge).2.2Negotiable subject to maximum of 1% of theprincipal amount disbursed (one off charge).2.2.2 Facility EnhancementFeeThis fee applies when anadditional amount is grantedto a customer. Where this feeapplies, management feeshall not apply.Negotiable subject to maximum of 1% of theadditional amount disbursed (one-off charge).2.2.3 Restructuring Fee(restructuring at the instanceof customer)Negotiable, subject to a maximum of 0.5% of theoutstanding amount being restructured (one offcharge).Seven (7) days grace period shall be allowed before penal charge shall be applied on the account. Forthe avoidance of doubt, there is no forbearance of penal charge for the duration of the grace period.5 Management fee is chargeable for all fresh requests and renewal of expired facilities. No charges forrequests declined'4Page 9 of 75
DESCRIPTIONRATEManagement fee is notapplicable in the case of arestructured facility2.2.4 Commitment FeeNegotiable, subject to a maximum of 1% on theundisbursed amount (one-off charge)Charges for ConsortiumLending2.32.62.3.1 Agency FeeNegotiable2.3.2 Management FeeNegotiable subject to a maximum of 1% ofprincipal amount (one–off charge)2.3.3 Commitment/NonDrawing FeeNegotiable subject to a maximum of 0.5% of theundisbursed amount (one-off charge)2.3.4 Commission Charges forUnderwriting ServicesNegotiableCredit Reference Reports6Cost recoveryInterbank Borrowing Rate:2.72.7.1 Overnight /Call moneyNegotiable2.7.2 TenuredNegotiablePAGE LEFT BLANK FROM THIS POINTThis is applicable to only customer-induced credit reference reports. For loans granted, this cost would be part ofthe management fee and therefore, the customer should not be charged. For credits not granted as a result ofnegative credit report, full cost recovery should be borne by the customer.6Page 10 of 75
SECTION 3: CURRENT ACCOUNT MAINTENANCE FEEDESCRIPTION3.1Current AccountMaintenance Fee (CAMF):Applicable to currentaccounts ONLY in respect ofcustomer-induced debittransactions to third partiesand debittransfers/lodgments to thecustomer’s account inanother bank. Note thatCAMF is not applicable toSavings AccountsRATENegotiable subject to a maximum of N1 per millePAGE LEFT BLANK FROM THIS POINTPage 11 of 75
SECTION 4: COMMISSION ON BONDS GUARANTEES &INDEMNITIES, ETC.DESCRIPTIONRATE4.1Bid bond/Tender Security/BidSecurityNegotiable subject to a maximum of 1% of the Bondvalue for the first year and 0.5% on subsequent yearson contingent liabilities4.2Performance Bond(chargeable from date ofcontingent liability)7Negotiable subject to a maximum of 1% of the Bondvalue for the first year and 0.5% on subsequent yearson contingent liabilitiesAdvance PaymentGuarantee (APG)Negotiable subject to a maximum of 1% of the APGvalue for the first year and 0.5% on subsequent yearson contingent liabilities(chargeable from date ofcontingent liability)Note: Fees shall be charged based on the value ofadvance payment received by the bankThird-party ChequeIndemnitiesTo be discouraged – However, negotiable for nonclearing financial institutions e.g. Micro-financebanks,4.5Bank GuaranteeNegotiable subject to a maximum of 1% of theGuarantee value for the first year and 0.5% onsubsequent years on contingent liabilities4.6Other Bonds, Guarantees andIndemnitiesNegotiable subject to a maximum of 1% of the valuefor the first year and 0.5% on subsequent years oncontingent liabilities4.34.4PAGE LEFT BLANK FROM THIS POINTChargeable date refers to the date that the amount is received. Where a Guarantee involves the receipt of fundsfrom a third party, the contingent liability is deemed to arise on the date of receipt and charges based on theamount received7Page 12 of 75
SECTION 5: FOREIGN EXCHANGE hases from CBNAs may be advised by the CBN.5.2Inter-bank PurchasesAs may be advised by the CBN5.3Inward Telegraphic/SWIFTand other transfersexpressed in foreigncurrencyNo charge5.4Travelers ChequesAs may be advised by the CBN5.5Foreign Currency Purchasesfrom customersInterbank foreign exchange bid rateSales:5.6Outward Telegraphic/SWIFTand other transfersSwift cost recovery, 0.5% commission on transferplus associated offshore bank charges (whereapplicable)5.7Foreign Currency Sales toCustomersAs may be advised by the CBN5.8Commission on Withdrawalsfrom Domiciliary Accounts(whether savings or currentaccount)0.05% of transaction value or 10, whichever islower5.9Foreign Draft Purchase0.1% of the value of the cheque plus offshorecharges5.10Collection Charge onCheques1% of cheque value or Naira equivalent of US 10,whichever is lowerPAGE LEFT BLANK FROM THIS POINTPage 13 of 75
SECTION 6: BILLS FOR COLLECTIONDESCRIPTIONRATEBills for Collection (Inward)Collection:6.1.1 Commission on Bills forCollectionNegotiable subject to a maximum of 0.5% of the billvalue6.1.2 Postage (whereapplicable)Actual cost of postage6.1.3 CommunicationCharge (where applicable)Actual cost of communication6.2Holding Charges after NonPayment, Chargeable OneMonth after Due DateN5,000 per month6.3Extension Charges for SightBills altered to Tenured(usance) BillsN3,000 plus cost of SWIFT6.4Protest Charges plus NotaryPublic FeesCost of postage, (chargeable only where theagreement specifies that the customer will pay)6.1Bills for Collection (Outward)6.56.6Collection Commission:Commission on Bills forCollectionBills for Collection –NegotiationNegotiable subject to a maximum of 0.5% of theface value of the billNegotiablePAGE LEFT BLANK FROM THIS POINTPage 14 of 75
SECTION 7: STRAIGHT FORWARD HANDLING OF DOCUMENTSDESCRIPTION7.1Export Documents DeliveryRATENegotiable subject to a maximum of N5,000 pluscost of courierImport Documents:7.27.2.1 DeliveryNegotiable subject to a maximum of N5,000 pluscost of courier7.2.2 Bills for Collectionagainst AcceptanceNegotiable subject to a maximum of N5,000 pluscost of courier7.2.3 Bills for Collectionagainst PaymentCost of courierPAGE LEFT BLANK FROM THIS POINTPage 15 of 75
SECTION 8: INWARD AND OUTWARD LETTERS OF CREDITDESCRIPTIONRATEInward Letters of Credit (Export)8.1Processing and Registrationof Nigerian Export (NXP)FormN3,000 in addition to maintenance fee on FormNXP as advised by the CBN.Advising Commission:8.28.2.1 Where a Nigerian banksimply verifies authenticity ofN5,000 flatthe Credit and deliverssame.8.2.2 Where a Nigerian bankhas to rewrite the Credit atthe instance of thecustomer0.05% of the value, subject to a minimum of Nairaequivalent of US 258.3Commission onConfirmation of LCMinimum of N5,000 subject to a maximum of 0.5% ofthe face value.8.4Letter of Credit - NegotiationNegotiableOutward Letters of Credit (Import)8.5Purchase of Form AN3,000 in addition to maintenance fee on FormNXP as advised by the CBN.Form M:8.68.78.6.1 ProcessingN3,000 in addition to maintenance fee on FormNXP as advised by the CBN.8.6.2 AmendmentNegotiable subject to a maximum of N5,0008.6.3 Revalidation/ExtensionsNegotiable subject to a maximum of N5,000LC EstablishmentCommissionPage 16 of 75
DESCRIPTIONRATE8.7.1 For credits up to 180days1% of face value8.7.2 For credits up to 270days1.25% of face value8.7.3 For credits up to 360days (these charges are onthe period of validity of thecredit)1.5% of face valueRenewal and Extension inthe LC value:8.88.8.1 RenewalsCommission on applicable LC establishment asspecified in 8.78.8.2 ExtensionsN5,000.00 flat8.9Increases or Enhancementsin the LC value:Additional establishment commission should becharged on the amount of any increase for theunexpired period of validity of credit (in line 8.7above)8.10Amendment of LC at theInstance of the CustomerN2,000 per applicationUsance Bill under CreditGuarantee Commissions:8.11.1 Where the bill is lessthan one yearN3 per mille per month8.11.2 Where the billexceeds one yearN5 per mille per month8.12Pre-Arrival AssessmentReport (PAAR)N2,500 flat irrespective of payment mode8.13Processing of Form NCXN3,000 in addition to maintenance fee on FormNCX as advised by the CBN.8.11PAGE LEFT BLANK FROM THIS POINTPage 17 of 75
SECTION 9: INTERNAL TRANSACTIONS (WITHIN NIGERIA )DESCRIPTIONRATEBank Drafts9.19.1.1 CustomerCurrent Account: - N300Savings Account: - N5009.1.2 Non-CustomerN500 0.1% of Draft value9.2Draft RepurchaseNo charge9.3Charge paid by nonaccount holders forinitiating cash transactions(e.g. local money transfer,Prepaid Card loading),subject to maximum dailylimit of N20,000N200 flat. However, banks are enjoined toundertake KYC on such customers.9.4Cash Handling chargeAs may be advised by the CBN9.5Special Clearing ofChequesNegotiable9.6Standing Order Charge (InBranch) at the instance ofthe Customer9.7(a) Intra-bank – No charge(b) maximum of N50 per transactionDirect Debit9.7.1 Direct Debit ChargeSame as the cost of platform used9.7.2.1 Due to reasons other than the accountbeing unfunded) - No charge9.7.2 Failed Direct Debit9.7.2.2 Due to the account being unfunded - 1% ofamount or N5,000 whichever is higher (to be borneby drawer only).9.8Safe CustodyNegotiable9.9Stopped ChequesN500 per order9.10a. Processing fee – N100 flatPage 18 of 75
DESCRIPTIONPurchase/Sale of TreasuryBills for CustomersRATEb. Custodian fee – in line with extant Guidelines onCustodianship on Money Market and Other FixedIncome Instruments (applicable on Treasury billspurchase)(c)Settlement of trade via S4 – Cost recoveryPage 19 of 75
SECTION 10: ELECTRONIC BANKINGDESCRIPTIONRATEInternet Banking:10.1.1 Hardware Token10.1.2 Software Token – OneTime Password (OTP)10.110.1.4 Bills Payment(Including Bills Paymentthrough other E-channels)10.3No charge.However, where the OTP is sent to the customer viaSMS, charges will be on cost recovery basis.Cost recovery subject to a maximum of N2,500.10.1.3 Hardware Tokenreplacement10.2Cost recovery subject to a maximum charge ofN2,500.Electronic Funds Transfer:RTGS(Customer to bear cost only in the event of physicaldamage, loss of token or replacement afterexpiration)Negotiable subject to a maximum of N500perbeneficiary payable by the senderBelow N5,000 – N10N5,001 - N50,000 – N25Above N50,000 – N50N950Card Maintenance Fee10.410.4.1 Foreign CurrencyDenominated Debit/CreditCards10.4.2 Naira Debit/CreditCard 10 p.a. (or its equivalent)Cards linked to current account- No chargeCards linked to savings accounts- maximum of N50quarterly maintenance feeCredit Card Charges:10.510.5.1 Issuance FeeN1,000 (one-off charge). The same charge appliesirrespective of card type (i.e. regular or premiumcard)Page 20 of 75
DESCRIPTIONRATE10.5.2 Replacement Fee (atcustomer’s instance for lostor damaged cards)N1,000 (one-off charge). The same charge appliesirrespective of card type (i.e. regular or premiumcard)10.5.3 Renewal Fee (uponexpiry of existing cards)N1,000 (one-off charge). The same charge appliesirrespective of card type (i.e. regular or premiumcard)10.5.4 Interest ChargesNegotiableDebit Card Charges:10.610.6.1 Issuance FeeN1,000 (one-off charge). The same charge appliesirrespective of card type (i.e. regular or premiumcard)10.6.2 Remote-On-Us (fromother bank's ATM) in Nigeria.maximum of N35 after the third withdrawal withinthe same month10.6.2 Replacement Fee (atcustomer’s instance for lostor damaged cards)N1,000 (one-off charge). The same charge appliesirrespective of card type (i.e. regular or premiumcard)10.6.3 Renewal Fee (uponexpiry of existing cards)N1,000 (one-off charge). The same charge appliesirrespective of card type (i.e. regular or premiumcard)10.6.4 Prepaid CardLoading/UnloadingNo chargeATM Transactions:10.710.7.1 On-Us (withdrawalfrom issuing bank's ATM)No charge10.7.2 Not On-Us (withdrawalfrom other bank's ATM) inNigeria.N35 after the third withdrawal within the samemonth10.7.3 InternationalWithdrawals (perExact cost by international acquirer (cost recovery)Page 21 of 75
DESCRIPTIONRATEtransaction) whetherdebit/credit cardMerchant ServiceCommission (MSC)10.810.9General Merchant(Including Domestic,International Travels andEntertainment)0.50% of transaction value but not more thanN1,000Bulk Payments (e.g. Salaries,Dividends etc)Negotiable subject to a maximum of N15 perbeneficiary payable by the senderTransaction Alerts10.10.1 SMS alert(Mandatory)However, where a customer10.10 opts not to receive SMSalert, the customer shouldissue an indemnity (for lossesthat may arise as a result) tothe bank.10.10.2 Email notificationCost recovery (on customer-induced transactions)No charge (for bank-induced transactions)No charge10.11 PIN ReissueNo charge10.12 PIN ResetNo charge10.13Use of UnstructuredSupplementary Service Data(USSD)10.14 Purchase with cash-backCurrent NIP charges applyN100 per N20,000 subject to cumulative N60,000daily withdrawalPAGE LEFT BLANK FROM THIS POINTPage 22 of 75
SECTION 11: MISCELLANEOUSDESCRIPTIONRATE11.1Reactivation of AccountsNo charge11.2Closure of Account(savings, current, ordomiciliary)No charge11.3Insurance Premium paidon behalf of customersExact Premium (customer to choose from a list of atleast 3 insurance companies to be recommendedby the bank)Issuance of Statement ofAccount:11.411.4.1 Mandatory MonthlyIssuance of Statement ofAccount on Current andSavings AccountsNo charge11.4.2 Special Request forStatement of Account(request in a manner otherthan agreed onmandatory issuanceMaximum of N20 per pageReturned Cheques:11.511.5.1 Due to reasonsother than the accountbeing unfundedNo charge11.5.2 Due to the accountbeing unfunded1% of amount or N5,000 whichever is higher (to beborne by drawer only). This is without prejudice tothe Dud Cheque ActBusiness Visit Initiated byCustomer:11.611.6.1 LocalNo charge11.6.2 ForeignNegotiablePage 23 of 75
DESCRIPTIONRATE11.7Status Enquiry at theRequest of CustomerN500 per request11.8Letter of Discharge forFacilities Repaid byCustomerNo chargeVerification of Customers’Documents withGovernment Agencies:11.9.1 Search atCorporate AffairsCommission (CAC), landregistry, legal search etc.Cost recovery11.9.2 Obtaining CertifiedTrue Copy (CTC)Cost recovery11.9.3 Perfection ofSecurity for Credit Facilities.Cost recovery11.10Confirmation of OverseasEnquiries to CorrespondentBank at the Instance of theCustomerN500 plus Cost of Postage (if applicable)11.11Intermediation Fees forCommercial Papers (to beborne by the issuer)Negotiable11.12Issuance of WithdrawalBooklet/PassbookNo charge11.13Customized DepositBookletCost Recovery11.14Over-the-counter CashWithdrawals below the limitset by the CBN cashwithdrawal/lodgmentpolicyNo charge11.9Page 24 of 75
DESCRIPTION11.15Intra-bank CashDeposits/withdrawalswithin limits approved bythe CBNRATENo chargeCost of Cheque Books11.16.1 Cheque BooksCost recovery11.16.2 Counter ChequeN50 per leafletAdvisory/Consultancy feeNegotiable (only applies where there is a writtenadvisory/consultancy agreement between thebank and the customer)11.1611.17Cashless PolicyCash deposit - 2% for transactions above N500,00011.18.1 IndividualCash withrawal - 3% for transactions aboveN500,00011.18Cash deposit - 3% for transactions above N3,000,00011.18.2 CorporateCash withrawal - 5% for transactions aboveN3,000,000PAGE LEFT BLANK FROM THIS POINTPage 25 of 75
SECTION 12: SANCTIONSi.Financial Institutions are to note that any breach of the provisions of this Guide carries apenalty of N 2,000,000 per infraction or as may be determined by the CBN from time totime.ii.Where a bank is found to have wrongfully imposed a particular charge on its customers,the provision of Section (i) above shall apply for the charge on each customer.iii.Failure to comply with CBN’s directive in respect of any infraction shall attract a furtherpenalty of N2,000,000 daily until the directive is complied with or as may be determinedby the CBN from time to time.iv.Banks are required to log every complaint received from their customers into theConsumer Complaints Management System (CCMS) and must generate a uniquereference code for each complaint lodged, which must be given to the customer. Failureto log and provide the code to the customer amounts to a breach and is sanctionablewith a penalty of N1,000,000 per breach.v.A penalty of N100,000 shall be imposed on a financial institution that contravenes theprovisions of Part 6C.Page 26 of 75
PART 2:OTHER FINANCIAL INSTITUTIONSPAGE LEFT BLANK FROM THIS POINTPage 27 of 75
PART 2 (A): MICRO-FINANCE BANKSPAGE LEFT BLANK FROM THIS POINTPage 28 of 75
SECTION 1: INTEREST ON DEPOSITSDESCRIPTIONRATE1.1Current AccountsNegotiable11.2Savings AccountsMinimum of 30% of MPR p.a. (not applicable if acustomer makes more than 4 withdrawals in a month)1.3Term Deposit AccountsNegotiablePAGE LEFT BLANK FROM THIS POINT1The responsibility for initiating the negotiation of interest shall be at the instance of the customerPage 29 of 75
SECTION 2: INTEREST RATES AND LENDING FEESDESCRIPTIONRATEINTEREST RATESInterest Rate on loans,authorized overdrafts andother advances/facilities22.12.22.32.42.5Note that when there is achange in the agreed rate,the customer must benotified within 5 businessdays in advance ofapplication of the new rate.Unauthorized OverdraftDrawing against UnclearedEffectsMicroLeasing/Microfinancerelated Hire purchasePenal Rate3 for laterepayment of loans,authorized overdrafts,micro leases,microfinance-related hirepurchase and otheradvances/facilities,including unauthorizedoverdraft as in 2.2 above.Lending FeesNegotiableNot permissible except overdraft occasioned by loanand advances repayment and interest. Where thisoccurs, Penal Rate, as in 2.5 below, shall applyNegotiableNegotiableMaximum of 1% flat per month on unpaid amount inaddition to charging current rate of interest onoutstanding debt (without prejudice to the provisions ofthe Prudential Guidelines on the limitation of accruals)Three (3) days from the date of execution, shall be allowed within which the contract may be rescindedprovided no draw down has been made3 Three (3) days grace period shall be allowed before penal charge shall be applied on the2account. For the avoidance of doubt, there is no forbearance of penal charge for the durationof the grace period.Page 30 of 75
DESCRIPTION2.62.7Management Fee4covering processing,appraisal, ancillary andother related fees on a newloan application (one-offcharge).Negotiable subject to maximum of 1% of the principalamount disbursed (one off charge).Facility Enhancement FeeNegotiable subject to maximum of 1% of the additionalamount disbursed (one off charge). Where this feeapplies, management fee shall not apply.Restructuring Fee(Restructuring at theinstance of customer)2.82.92.102.11RATEManagement fee is notapplicable in the case of arestructured facilityCommitment FeeA fee charged by afinancial institution for anundisbursed facility in orderto keep the line of creditopenCredit Reference Reports5Negotiable, subject to a maximum of 0.50% on theoutstanding amount being restructured (one offcharge).Negotiable, subject to a maximum of 1% of theundisbursed amount (one-off charge)Cost recoveryCharges for ConsortiumLending2.11.1 Agency FeeNegotiable2.11.2 Management FeeNegotiable subject to a maximum of 1% of principalamount (One–off charge)'2.11.3 Commitment/NonDrawing FeeNegotiable subject to a maximum of 0.5% of theundisbursed amount(one-off charge)Management fee is chargeable for all fresh requests and renewals of expired facilities. No charges forrequests declined'5 This is applicable to only customer-induced credit reference reports. For loans granted, this cost would bepart of the management fee and therefore, the customer should not be charged. For credits not grantedas a result of negative credit report, full cost recovery should be borne by the customer.4Page 31 of 75
DESCRIPTION2.11.4 Commission Chargesfor Underwriting ServicesRATENegotiablePAGE LEFT BLANK FROM THIS POINTPage 32 of 75
SECTION 3: CURRENT ACCOUNT MAINTENANCE FEEDESCRIPTIONCurrent AccountMaintenance Fee:3.1Current AccountMaintenance Fee –applicable to currentaccounts ONLY in respectof customer-induceddebit transactions to thirdparties and debittransfers/lodgments to thecustomer’s account inanother bank. Note thatCAMF is not applicable toSavings AccountsRATENegotiable subject to a maximum of N1 per millePAGE LEFT BLANK FROM THIS POINTPage 33
Bid bond/Tender Security/Bid Security Negotiable subject to a maximum of 1% of the Bond value for the first year and 0.5% on subsequent years on contingent liabilities 4.2 Performance Bond (chargeable from date of contingent liability)7 Negotiable subject to a maximum of 1% of the Bond value for the first year and 0.5% on subsequent years
