You will have to pay more for some banking charges or fees, particularly electronic transactions, henceforth.
This is because some commercial banks have sent notices to their customers that effective next month, tariffs will go up.
These charges are coming up because of the increase usage of Automated Teller Machines and the internet by consumers for transactions, particularly in this covid-19 era.
One noticed read: “Please be informed that effective Monday, March 1st, 2021, issuance and monthly maintenance fees on all Visa and Mastercard debit and prepaid cards will be reviewed upwards.”
Another noticed said “the upward tariff charges has become possible because of the rising cost in maintenance of equipment”.
Banks make so much income from electronic transactions and will therefore take advantage of the rising number of transactions to accrue more returns.
Importantly, banks recognize fees and commissions as very critical revenue item in their operating income.
These upward review in the electronic transactions could also trigger some adjustments in fees and commissions of account maintenance and loans. Net fees and commissions is the third most important source of income for banks.
Fees & commissions declined to 11.5% In September 2020
According to the September 2020 Banking Sector Report, the portion of banks’ income from fees and commissions declined to 11.5% from 12.1%, in line with the decline in the growth of fees and commissions within the review period.
This was due to the suspension of certain fees and charges due to the covid-19 pandemic.