Restrictions on over-the-limit and unauthorised overdraft fees charged by Bermuda’s banks are set to take full effect next month, as reforms aimed at improving fairness in the sector move into their final phase.

According to the Bermuda Monetary Authority’s latest Regulatory Update for the quarter ended December 31, the administrative requirements governing how institutions apply such fees will kick in on March 25.

Certain restrictions on the charges themselves have already been in force since September 25.

The measures, introduced in Parliament last September by David Burt, the Premier and Minister of Finance, limit how frequently banks and deposit-taking institutions may impose over-the-limit and unauthorised overdraft fees.

Under the rules, over-the-limit fees cannot be charged when a customer goes over their credit limit solely because of interest or other fees, and may be applied only once per calendar month for each product or service.

Unauthorised overdraft fees are similarly limited to once per calendar month, or once per quarter where the billing cycle is more than 90 days.

Customers must also expressly opt in to over-the-limit arrangements, and institutions will be required to provide annual opportunities for clients to review or terminate those agreements.

The reforms form part of a broader initiative by the Government to strengthen oversight of banking fees and improve access to fair and transparent financial services.