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.
The change will come into effect on March 12, 2026, according to a government brief.
The changes amend Canada’s Financial Consumer Protection Framework Regulations. They will also restrict financial institutions from charging an NSF fee more than once within two business days in relation to the same personal account or if the overdraft is less than $10….