Remove fixed interest rates on credit cards, CBN tells Banks

Commercial banks in the country have been ordered to remove fixed interest rate on credit cards.

The directive, which was issued via a circular, is part of four new guidelines for the banking sector released on Tuesday by the CBN. The circular was signed by the Director, Banking and Payment System, Mr. Dipo Fatokun.

The circular, with reference number BPS/DIR/GEN/CIR/03/005, stated that in furtherance of its efforts at strengthening the Nigerian payment system, directed the removal of fixed interest on credit cards; and discontinuation of actual address verification in account openings for customers with the Bank Verification Number.

In the circular, commercial banks were also directed to allow customers deposit cheques in their saving accounts as well as the embedding of customers’ Bank Verification number on their payment cards.

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In approving cheque deposits into savings accounts, the apex bank limited the daily deposit to only N2m per customer per day. Prior to Tuesday’s directive, customers could only deposit cheques into a current account.

“Banks should begin to embed the BVN on all payment cards issued henceforth to facilitate off-line BVN verification and biometric-based customer authentication in such payment devices as the Automated Teller Machines, Point of Sale Terminal, kiosks etc.

“Savings account customers with the BVN should be allowed to deposit cheques not more than N2m in value into their savings account per, customer per day. Please, be guided and ensure strict compliance with the content of this circular,” the circular stated.