Ottawa, Canada – In a major move to reduce banking costs for consumers, the Canadian government has announced that non-sufficient funds (NSF) fees will be capped at $10 starting next year. This change aims to provide financial relief to Canadians who have been paying significantly higher NSF fees, often ranging from $45 to $50 per transaction.
The new regulation comes as part of the government’s broader initiative to make banking more affordable and fair for consumers. NSF fees are charged when a transaction, such as a cheque or pre-authorized payment, is declined due to insufficient funds in the account.
Finance Minister Chrystia Freeland stated that the cap is intended to protect vulnerable Canadians from excessive penalties that contribute to financial strain. Consumer advocacy groups have welcomed the move, calling it a step toward fairer banking practices.
The new rule will take effect in 2025, with further details on enforcement and implementation expected to be released in the coming months.