Financial Consumer Agency of Canada oversees new rules capping federally regulated banks’ NSF fees at CAD 10

The Financial Consumer Agency of Canada (FCAC) announced that new federal regulations are now in force limiting the non-sufficient funds (NSF) fees that federally regulated banks can charge on personal deposit accounts, with a maximum NSF fee of CAD 10. FCAC will supervise industry compliance with the new requirements. Under the rules, consumers cannot be charged more than CAD 10 in NSF fees when a payment cannot be covered from a personal deposit account, cannot be charged an NSF fee more than once within a period of two business days for the same personal deposit account, and cannot be charged NSF fees when the amount overdrawn is less than CAD 10. FCAC noted that, before the regulations took effect, NSF fees typically ranged from CAD 45 to CAD 48 and could be charged in rapid succession due to multiple declined payments, and it has updated consumer-facing information on rights related to NSF fees. FCAC is also preparing a report on the structure, level, and transparency of fees charged by Canadian banks, which it expects to publish later in 2026.