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CBN restricts alerts to customer-induced transactions only, caps fees to N4 per SMS

As part of strategic reforms to protect the millions of consumers of banking services, the Central Bank of Nigeria (CBN) has restricted alerts to customer-induced transactions only, capping fees charged by the banks on transaction alerts to N4 per SMS.

The CBN directed the banks to consolidate into one single SMS alert all associated notifications relating to a particular transaction. However, SMS alert are mandatory.

“However, where a customer opts not to receive SMS alert, the customer should issue an indemnity for losses that may arise as a result to the bank,” the apex bank ruled.

Besides, several bank customers who spoke to our correspondent on the new rule thanked the apex bank for removing frivolous alerts from banks as fees costumers should pay, saying all the banks are in the habit of deducting your money when they send you birth day greetings.

Others say their banks deduct their money even when they advertise their old or new services in an sms.

Kevin Amugo, director of Financial Policy and Regulation Department at the CBN, had said the charges came after extensive consultation with stakeholders.

He noted that “The aim of the guide is to enhance flexibility, transparency and competition in the Nigerian banking industry, explaining that “where a charge is stipulated as “negotiable”, banks and other financial institutions are required to draw the attention of customers to their rights to negotiate and the two parties are required to mutually agree on the applicable interest and/or charge via a verifiable means.”