Barbados central bank halts fees charged by banks for electronic transactions
Published:Wednesday | January 3, 2024 | 3:23 PM
BRIDGETOWN, Barbados, CMC – The Central Bank of Barbados (CBB) Wednesday said no fees are to be imposed for electronic transactions through Automated Clearing House (ACH) and real-time payments (RTP) transfers.
The announcement comes amid reports that the CBB, which regulates commercial banks, is investigating a plan by the Bank of Nova Scotia to make it more costly for residents to do business with it through inter-bank transfer.
Scotiabank announced on Tuesday that effective February 1, it will be introducing a fee of BDS$1.25 on the transactions of customers who use its online banking service and banking app to transfer funds from Scotia accounts to other local banks or credit unions, using RTP and ACH transfers.
The bank also informed customers that the fee would apply to in-branch transactions.
But, in a memo to the chief executive officer of commercial banks operating, CBB Governor Dr Kevin Greendige said under the National Payments Systems Act (NPSA) the central bank has responsibility for the oversight of the National Payment System, in accordance with the NPSA, “and in the execution of its duties for oversight and administration of the National Payment System, the bank shall consider the interest of consumers.
“Further, please be advised that Section 32 of the NPSA provides that the bank is empowered to establish rules to ensure transparency of conditions including fees and information requirements for payments services.”
Greenidge said with the CBB's focus on fostering the development of electronic payments, commercial banks are directed that effective January 2, 2024, “no fees are to be imposed for electronic transactions through the ACH, inclusive of RTP transactions.”
In addition, the CBB informed commercial banks that “any fees which are presently charged for electronic transactions through the ACH shall be immediately discontinued.”
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