Ottawa caps non-sufficient fund fees and places other limits starting March 2026

Ottawa caps NSF fees

Photo: The Canadian Press

The Bay Street Financial District is shown with the Canadian flag in Toronto on Friday, Aug. 5, 2022.  

Ottawa is limiting the fees that banks can charge customers who don't have enough in their accounts to cover a cheque or other pre-authorized charge.

The changes included in an order-in-council last week will take effect starting March 12, 2026.

The new rules cap non-sufficient funds fees at $10 for personal deposit accounts and prohibit charging more than one NSF fee in a period of two business days.

The changes also prohibit charging an NSF fee when an account shortfall is under $10.

The government announced in the budget last year that it would cap NSF fees at $10 and place other limits on them.

It said at the time that the fees charged by banks could reach almost $50 and that they disproportionately affect low-income Canadians and people with poor credit history.