Ottawa to force banks to identify carbon rebate by name in direct deposits
OTTAWA — Canadian banks that refuse to identify the carbon rebate by name when doing direct deposits are forcing the government to change the law to make them do it, says Environment Minister Steven Guilbeault.
Guilbeault is taking the stand after Tuesday’s federal budget promised to amend the Financial Administration Act so government payments accepted for deposit at Canadian banks will carry whatever title the government wants.
“The fact that they haven’t been doing it now for many years led us to take this position,” Guilbeault said.
His department has been battling with banks for almost two years over how carbon rebates are labelled when they are deposited directly into bank accounts.
The first rebate deposits in 2022 were labelled very generically — “federal payment” and “EFT Canada,” for example — which meant recipients had no idea why they were getting the money.
Some banks, but not all, have since amended their procedures to ensure bank statements reflect the measure’s new name: the “Canada Carbon Rebate.”
Toronto-Dominion Bank and Bank of Montreal have adopted the government’s requested “CdaCarbonRebate” entry, which fits the 15-character limit imposed by some banks.
However, Royal Bank of Canada and Bank of Nova Scotia were unable to make the change in time for the rollout, although both say they intend to update to the new name.
Canadian Imperial Bank of Commerce, meanwhile, is still calling it “Deposit Canada.”
Guilbeault said the lack of a clear identifier isn’t the only thing fuelling confusion about carbon pricing, but is definitely part of the problem.
“I think we took it for granted that since people were receiving it, people knew they were receiving it,” Guilbeault said.
“We’ve come to discover over the
Read more on financialpost.com
