The Central Bank of Barbados (CBB) has announced that it will not impose fees on electronic transactions conducted through Automated Clearing House (ACH) and real-time payments (RTP) transfers.
This proactive move comes in response to recent developments involving the Bank of Nova Scotia, which had planned to introduce new fees, potentially making it more expensive for residents to conduct inter-bank transfers.
CBB’s commitment to consumer interests
Underlining its commitment to safeguarding consumer interests, the CBB has initiated an investigation into the Bank of Nova Scotia’s proposal.
The Bank of Nova Scotia had revealed its intention to introduce a BDS$1.25 fee, effective February 1, 2024, on transactions involving customers using its online banking service and banking app to transfer funds from Scotia accounts to other local banks or credit unions via RTP and ACH transfers.
The bank also shared that this fee was set to apply to in-branch transactions.
Regulatory authority under the National Payments Systems Act (NPSA)
Dr. Kevin Greendige, the Governor of the CBB, asserted the central bank’s authority under the National Payments Systems Act (NPSA).
According to the NPSA, the CBB has the crucial responsibility of overseeing the National Payment System, and this oversight extends to ensuring the interests of consumers. Greendige highlighted that Section 32 of the NPSA empowers the CBB to establish rules aimed at enhancing transparency, including those related to fees and information requirements for payment services.
No fees for electronic transactions
In light of the CBB’s focus on fostering the growth of electronic payments and preserving consumer interests, commercial banks received a directive that went into effect on January 2, 2024.
Under this directive, there are no fees for electronic transactions conducted through the ACH, which includes RTP transactions.
Moreover, 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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