Central Bank of Barbados' Guidelines For Commercial Banks' Fees and Charges

The Central Bank of Barbados wishes to announce new guidelines governing the fees charged to customers by commercial banks.

The Bank advises that after a careful analysis in January 2004 of the banks’ fees, and after discussions with commercial banks, the following guidelines on bank charges become effective from February 23, 2004:

• No charges are to be applied for the encashment of cheques written on own banks.
• Customers are not to be charged for making transfers between their accounts at their bank’s ATM.
• Customers should not be charged for making account inquiries at their bank’s ATM.
• Customers and the Central Bank must be notified at least 30 days prior to the implementation of any new charges.

The Bank also wishes to remind the public that the following guidelines issued in 2001 are still in effect:

• No charges should apply for the encashment of cheques written on other banks.
• A maximum charge of 1% is to be applied where the value of coins being received/deposited exceeds $50.00.
• No charge should apply to third party withdrawals in the case of pensioners.
• The charge for the notification of dormant accounts should not exceed $10.00 per annum.
• The charge should, however, be reversed on acknowledgement by the account holder. In addition, interest should be paid on all dormant accounts.
• A bank may apply reasonable charges for withdrawals either at the ATM or over the counter, but such charges should not apply to both services.
• The minimum balance on which interest is to be paid should not exceed $300.00.

The Bank’s periodic assessments have revealed that, to a large extent, the commercial banks are complying with the guidelines established in 2001. In the cases where other charges have been the subject of frequent complaints the Bank is in discussions with the specific institution.

The above statement is issued for the information of the public.