The Central Bank of Nigeria (CBN) has
indirectly reintroduced Commission on
Turnover (CoT) fee as Current Account
Maintenance (CAM) Fee. Recall that the CBN
in 2013 commenced phased reduction of
CoT which terminated with zero CoT charge
this year. But in a circular to banks last
week signed by Director, Financial Policy &
Regulation Department, Mr. Kevin Amugo,
the CBN replaced the CoT with CAT but
subject to maximum of N1 per N1000
(Mille).

The circular was titled, “Introduction of
Negotiable Current Account Maintenaince
Fee Not Exceeding N1/Mille. It stated, “The
Revised Guide to Bank Charges (RGBC)
which came into effect on April 1, 2013
provides for a phased elimination of COT
charges in the Nigerian banking Industry.
Under the Guidelines, a zero COT regime
was to come into effect from January 2016.

The CBN noted that while the gradual phase
out was being observed, some banks
continued to charge Account Maintenance
Fees in addition to the reduced COT rate,
which in effect amounted to double
coincidence of charges The CBN is not
oblivious of the impact of declining crude
oil prices; operation of Treasury Single
Account; and other market turbulences on
the viability and stability of the banking
system.

“In furtherance of the mandate to promote
and safeguard a sound financial system in
Nigeria, banks are by this circular reminded
that the 2016 Zero COT regime as jointly
agreed during the 311th Bankers Committee
meeting of February 12, 2013 has come into
effect. In the interest of stability of the
banking system, a Negotiable Current
Account Maintenance Fee not exceeding N1
per mille may be charged in respect of all
customer induced debit transactions.
Please ensure strict compliance”.

www.vanguardngr.com/2016/01/cbn-reintroduces-cot-as-current-account-maintenance-fee/

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