Department of Finance Canada announced new rules capping non-sufficient funds (NSF) fees at CAD 10, down from as high as CAD 50, effective March 12, 2026. The package also introduces limits intended to reduce repeat and low-value NSF charges, with the cap expected to save Canadians more than CAD 600 million annually. Under the new protections, consumers cannot be charged an NSF fee more than once within two business days for the same deposit account, and no NSF fee may be charged when the overdraft amount on that account is less than CAD 10. The release also highlighted other affordability measures already underway, including enhanced low-cost and no-cost bank accounts in place since December 1, 2025 under a modernized Commitment agreed to by 14 federally regulated financial institutions, and modernized cheque hold rules in Bill C-15 that aim to increase immediately available deposited funds from CAD 100 to CAD 250 and remove timing distinctions between deposit methods. The Financial Consumer Agency of Canada will oversee industry compliance with the new NSF fee requirements. The government indicated it is developing regulations to reduce cheque hold periods and will continue engaging with experts and stakeholders on further consumer-focused banking measures.
Department of Finance (Canada) 2026-03-11
Department of Finance Canada caps non-sufficient funds fees at CAD 10 and adds new limits on repeat charges
The Department of Finance Canada announced new rules capping non-sufficient funds (NSF) fees at CAD 10, effective March 12, 2026, expected to save Canadians over CAD 600 million annually. Consumers cannot be charged an NSF fee more than once within two business days for the same account, and no fee applies if the overdraft is less than CAD 10. The Financial Consumer Agency of Canada will oversee compliance as the government develops further consumer banking regulations.