Ottawa Caps Banking Insufficient Fund Penalty at $10

Ottawa Caps Banking Insufficient Fund Penalty at $10
A combination photo shows Canadian investment banks RBC, CIBC, BMO, TD, and Scotiabank in Toronto, Ontario, on March 16, 2017, and June 19, 2024. Chris Helgren/Blair Gable/File Photo/Reuters
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Canadian financial institutions will not be permitted to charge more than $10 in non-sufficient funds (NSF) fees after the government capped the charges.

NSF fees are charged by banks and financial institutions when there is not enough money in a customer’s account to cover a pre-authorized payment or cheque. The government has estimated NSF fees at Canadian banks typically range from $45 to $48.