BRIDGETOWN, Barbados, CMC – The Central Bank of Barbados (CBB) Wednesday said RBC Royal Bank will from Friday no longer charge its customers for transactions they make using the automated clearing house (ACH), including through the real-time payments (RTP) system.
In a statement, the CBB said that the decision followed discussions held with the Bank and that RBC has also indicated that it will reimburse customers who have incurred these charges since January 2, 2024, a directive by the CBB that no fees should be applied to such transactions.
It said that these refunds would be made no later than January 19,
“We have been engaging with RBC for the past week, and they have indicated that while they intend to comply with our instructions, they need some time to reconfigure their system,” said CBB acting Governor Alwyn Jordan.
“They have also committed to reversing the ACH-related transaction charges their clients incurred from January 2, 2024, until the end of the reconfiguration period so that the delay does not disadvantage them,” he added.
The acting Governor also said that the CBB has indicated to commercial banks that it will engage with stakeholders regarding bank fees.
“We thank the public for their patience over the past few days as we sought to address the issue. We also thank RBC for their cooperation in resolving this matter. The Central Bank continues to enjoy a collaborative relationship with all financial institutions,” he added.
Last week, the CBB said no fees for electronic transactions through the ACH inclusive RTP transactions would be imposed.
The announcement came amid reports that the CBB, which regulates commercial banks here, was 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 last Tuesday that effective February 1, it will be introducing a fee of BDS$1.25 (One Barbados dollar=US$0.50 cents) 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 here, 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. the NPSA, “and 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 that due to 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, including RTP transactions.”
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