Scotiabank’s recent announcement of a new fee for inter-bank transfers was quickly met with opposition from the Barbados Central Bank.
The financial institution had notified customers of its intention to charge for the service from next month, but the regulator stepped in mere hours later to put a stop to it.
Despite earlier speculation among banking experts that other commercial banks would follow Scotia’s lead, the regulator’s order has prompted a radio silence among the banking community regarding the imposition of fees on bank-to-bank electronic transactions.
Barbados TODAY first reported on Tuesday that the Central Bank of Barbados was investigating plans by Scotiabank to start charging customers $1.25 to transfer funds from Scotia accounts to other local banks or credit unions, using real-time payments (RTP) and automated clearing house (ACH) transfers through its online banking service and banking app.
The bank also informed customers that the fee would apply to in-branch transactions.
Later that day, the Central Bank Governor, Dr Kevin Greenidge, issued a circular to commercial banks, directing them to discontinue any existing or planned imposition of fees on electronic transactions through the ACH, including RTP transactions.
He also reminded banks of their obligation under the National Payments Systems Act (NPSA) to ensure transparency of conditions, including fees and information requirements for payments. Dr Greenidge issued the directive under the authority of the 2021 NPSA, which grants the regulator the power to oversee the national payments systems and consider the interests of consumers.
