“CBN to Impose Fines on Banks for Delays in Resolving Customer Complaints”

jubril Lawal
3 Min Read

The Central Bank of Nigeria (CBN) has issued a stern warning to commercial banks, payment service providers, and other financial institutions about delays in addressing customer complaints. Under a new directive, any delay in resolving customer issues within 72 hours will result in a daily fine of N100,000. This is particularly aimed at speeding up the resolution of complaints related to Automated Teller Machine (ATM) transactions.

The CBN specified that failure to respond to customer or CBN inquiries concerning ATM complaints within the 72-hour timeframe will incur heavy fines. If an ATM transaction fails and the bank does not initiate an automatic reversal, the financial institution will be liable to refund the disputed amount, alongside an additional daily fine of N50,000.

These rules are part of the CBN’s broader 2024/2025 monetary, credit, foreign trade, and exchange policy guidelines, which set standards for banks under its regulation. The central bank is also enforcing compliance with fees and charges as outlined in previous guidelines from 2020 and 2019. Institutions that fail to provide camera footage for disputed ATM transactions will be penalized with a fine equal to the refunded amount. Additionally, ATMs without cameras will result in an initial N250,000 fine, with an extra N50,000 daily charge until a camera is installed.

The CBN reiterated that interest rates in the 2024/2025 fiscal year will remain market-driven, influenced by the Monetary Policy Rate (MPR). For current and savings account deposits, interest rates will either be negotiable or follow CBN guidelines. Special-purpose naira deposits will carry a minimum interest rate of 30% of the MPR, while rates for foreign currency deposits will be negotiable. Loans repayable in installments must use the reducing balance method to avoid higher interest charges.

In addition, banks are required to provide free monthly account statements to customers, detailing all transactions, including interest charges and overdrawn balances. Savings deposit interest will be calculated daily and credited monthly, with no minimum balance requirement for earning interest.

The CBN also emphasized that banks must ensure the accuracy of charges and interest on accounts. Any discovered errors, such as non-payment or overcharging, must be corrected within two weeks, along with a refund of the excess amount and simple interest at the CBN’s maximum lending rate. Banks are also required to issue apology letters and, if necessary, reconstruct customer accounts. Failure to comply will result in further penalties.

For foreign currency accounts, similar rules apply, with refunds accompanied by interest at the CBN’s foreign currency lending rate. Non-compliance will attract additional fines.

This comprehensive set of guidelines reflects the CBN’s commitment to safeguarding customer interests and ensuring that financial institutions adhere to industry best practices in dispute resolution and fund management.

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