In its relentless efforts to curb arbitrary transaction charges by Deposit Money Banks, DMBs, and other banks in the country, Central Bank of Nigeria, CBN, yesterday urged bank customers not only to insist, but persist in demanding that their respective banks give them good service and at affordable charges. The apex banking institution gave the charge ahead of a planned boycott of banking services slated for today by Consumer Advocacy Foundation of Nigeria, CAFON, a non-profit making organisation, owing to perceived arbitrary charges by commercial banks CBN recalled that it had, in furtherance of its efforts to improve the efficiency and transparency of the banking sector, introduced radical reforms such as the rolling out of the cashless policy with a numbers of options in the electronic payment systems, including mobile banking, in order to drive the Vision 20: 2020 programme.
To achieve this, the banking sector regulator stated that it also enlisted electronic and telecom service providers to ensure convenience and safety and also set up the Consumer Protection Debarment, CPD, saddled with the responsibility of ensuring that bank customers are not unduly short-changed by commercial banks. According to CBN, while the regulators are doing their own bit, bank customers must not only insist, but persist in demanding good service and at affordable charges, adding that Nigerians should note that bank-customer relationship is personal and contractual and should seek for redress when shortchanged. Noting that Financial System Strategy, FSS, 2020 provided for the need to build a financial system that will power one of the 20 largest economies in the world by 2020, while the Payment System Vision, PSV, 2020 also emphasised a payment system infrastructure that will support such economy, CBN pointed out that the rapid transformation that followed the adoption of internet banking, electronic payments and the cashless policy were all aimed at making access to financial services and payment systems easier.
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According to the bank, these services come at a cost because along the payment system value chain, there are investors in switching, network, solutions providers, and so on which have to be paid for. While recognising that there are globally acceptable ranges of charges for these modern services, some of which are articulated in its guide to banking services already made available to the public, it lamented that Nigerians are not determined to insist on or fight for their rights as they are always in a hurry. It clarified: “Consequently, in order to ensure a mutual and beneficial bank-customer relationship, the CBN had issued guidelines on bank charges. The guidelines were widely circulated in order to ensure standards as well as help bank customers make informed decisions regarding any perceived unjust charges. “It therefore remains the obligation of the bank customers to ensure that they are not short-changed, no matter how small. In the event customers failed to stop their banks from cheating them, the CBN had again gone further to provide contact centre with telephone lines, email address to enable customers lodge their complaints with its CPD.” Citing its recent successful investigation of 6,000 complaints it received of unauthorised deductions that amounted to over N6.2 billion as evidence of its determination to protect customers’ interests at all times, the apex banking institution stated that it had already compelled commercial banks involved in such arbitrary deductions to return same to customers.
It pointed out however that the various service providers who invested in different electronic and telecommunications platforms, which enabled safe and convenient financial transactions for bank customers should be entitled to equitable compensations as a reward for their services. While restating its commitment to ensure that all parties in financial transactions are adequately compensated and protected, CBN stated that it was only fair that CAFON, in organising the planned protest take cognisance of value creation by the enablers of today’s convenient financial transactions process. To create a better understanding about the dynamics in the banking sector, CBN urged members of the NGO and other advocacy groups to get involved in encouraging Nigerians to take complaints that are related to wrongful bank charges to the appropriate quarters.
