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Banks Phase out COT Counts Losses

The total removal of COT from customers transaction from January 1, 2016, as made different banks to start looking for another means of making profit.
In the past, the CBN in conjunction with the Bankers Committee placed a ceiling on the maximum amount a bank can charge as COT per mille (per 1,000), in addition to this, they initiated a gradual phase out of COT. From N3 per N1, 000 in 2013, to N2 in 2014, and N1 per N1, 000 transaction in 2015. By 2016, banks are not permitted to charge their customers COT. However, in a bid to adapt before hand and retain customers, some banks do not charge COT at all but some banks have been indicted for charging above the approved margin. The removal of COT as authorised by CBN is to make banks give loans so as to inprove the small scale industries.
This is a Good one for customers but not the banks as there might be loss of jobs and salary cut to employees.


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