Loading...

Zenith, GTBank, Access, UBA Generate N24.3bn From Account Maintenance Charges

Zenith, GTBank, Access, UBA Generate N24.3bn From Account Maintenance Charges


 
Between January and June 2019 , four leading banks generated N 24 . 3bn from account maintenance charged on their customers’ accounts , investigation has shown .
This is an increase of about 19 .18 per cent from N 20.39 bn generated in the corresponding period in 2018 .
Some banks on monthly basis charge their customers N 50 with or without card while some deduct N 1,000 from each customer’ s account per annum for maintaining their savings accounts .
The Senate had in 2018 called on the Central Bank of Nigeria to suspend the deduction of card maintenance fee.
The upper legislative chamber also directed its banking committee to investigate the deduction in comparison with what obtained in other countries .
The earning of some banks in account maintenance charges may have been propelled by large customer base.
Two leading banks by profit , Zenith Bank Plc and GTBank , for instance , have over 8 .6 million and 16 million customers respectively.
Specifically, Zenith Bank recorded N 9. 57 bn from account maintenance fee in the first six months of 2019 . This reflects 10 . 76 per cent increase over N 8. 64 bn reported in the first six months of 2018 .
GTBank Group ’s audited report for the first six months of the year ; N 5 . 71 bn was generated for maintaining customers account in the first six months of the year , up from N 5 . 18 bn in the first six months of 2018 .
The merger between Access Bank Plc and Diamond Bank Plc aided 96 . 15 per cent increase on account maintenance fees of Access Bank , moving from N 3. 14 bn in the first six months of 2018 to N 6 .16 bn in the first six months of 2019 .
Access Bank in its audited result and accounts for the six months ended June 30 said account maintenances fees were fees charged on current account .
“ N 1 on every N 1 , 000 in respect of all induced debit transactions is charged on these accounts , ” Access Bank explained.
The bank noted that card maintenance fees were fees charged customers for maintaining their accounts .
“The fees are earned and recognised by the bank over the validity year of the card. The bank charged the customers for this service on a monthly basis , ”extract from the bank ’s audited six months result for the period ended June 30 to the Nigerian Stock Exchange explained.

The United Bank for Africa Plc, on the other hand , reported 16 . 3 per cent increase on account maintenance fees , N 3. 39 bn , in the first six months of the year , up from N 2 .9 bn in the first six months of 2018 .
The President of the Bank Customers Association of Nigeria, Dr Uju Ogubunka , explained that the guide to charges by Banks and Other Financial Institutions in Nigeria , 2017 made no provision for “ Account Maintenance Fee ” .
Ogubunka , a former Registrar and Chief Executive of the Chartered Institute of Bankers of Nigeria, added , that the CBN guideline , however , provided for ‘Current Account Maintenance Fee ’
He noted that the CBN guide prescribed that the rate chargeable by a bank for this fee was negotiable with a customer subject to a maximum of N 1.00 per mille” .
Ogubunka said, “Consequently, no bank is authorised to make this charge without first, negotiating with the customer and the agreed rate must not be more than N1.00 per mille .
“ How many customers know that they ought to negotiate with banks on this fee? How many cross -check and verify the type, amount and basis of charges entered into their accounts by their banks ? How many seek redress when necessary ?
“ Nevertheless, the Guide ’s provision, directly or indirectly, places the burden on the banks . It is their responsibility to call the attention of their customers for negotiation.”
He called on regulators and supervisors of banks in the country to investigate and confirm that banks are complying with regulatory provisions on account maintenance charges.
According to him , CBN needs to impose deterrent sanctions on any bank found , not just violating the regulations but more fundamentally , cheating customers as well as putting the reputation of banks and bankers in disrepute .
He asked bank customers to examine their accounts periodically , with a view to ensuring they were managed in accordance with the rules / regulations of banking operation in the country .

COMMENTS

Name

BBNaija,114,BBNAIJA: CINDY BEGS NIGERIANS TO SAVE FRODD; GIVES REASONS,1,Blogging,1,Business,3,Celebrity,20,Crime,19,davido,8,Education,13,Efcc,3,Entertainment,200,Glo not Opening BlogSpot,1,Gossip,94,Health,2,Jamb,11,Jobs,6,Lifestyle,25,Make money online,1,Metro News,90,Music,33,Naira Marley,3,News,351,Nigeria,4,Nigeria’s population,1,Nigerian Jobs,3,Online Jobs You Could Do,1,Politics,14,Regina-Daniels,12,Relationships,2,Religion,2,Sport,25,Sports,144,Tech,1,Top 10 Latest Vacancies In Nigeria,1,Video,18,Viral,26,wedding,4,World,10,Zlatan,2,
ltr
item
9jastarMedia: Zenith, GTBank, Access, UBA Generate N24.3bn From Account Maintenance Charges
Zenith, GTBank, Access, UBA Generate N24.3bn From Account Maintenance Charges
Zenith, GTBank, Access, UBA Generate N24.3bn From Account Maintenance Charges
https://www.gistreel.com/wp-content/uploads/2019/09/Banks-maintenance-charge.jpg
9jastarMedia
https://www.9jastarmedia.com/2019/09/zenith-gtbank-access-uba-generate.html
https://www.9jastarmedia.com/
https://www.9jastarmedia.com/
https://www.9jastarmedia.com/2019/09/zenith-gtbank-access-uba-generate.html
true
548265725314247056
UTF-8
Loaded All Posts Not found any posts VIEW ALL Readmore Reply Cancel reply Delete By Home PAGES POSTS View All RECOMMENDED FOR YOU LABEL ARCHIVE SEARCH ALL POSTS Not found any post match with your request Back Home Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sun Mon Tue Wed Thu Fri Sat January February March April May June July August September October November December Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec just now 1 minute ago $$1$$ minutes ago 1 hour ago $$1$$ hours ago Yesterday $$1$$ days ago $$1$$ weeks ago more than 5 weeks ago Followers Follow THIS CONTENT IS PREMIUM Please share to unlock Copy All Code Select All Code All codes were copied to your clipboard Can not copy the codes / texts, please press [CTRL]+[C] (or CMD+C with Mac) to copy