AIB is to refund customers who are charged a €10 fee because there is insufficient funds in their accounts for a payment to be processed.

It says the measure will apply to fees charged in current accounts in March and April.

Both personal and business customers will benefit from the move.

"We will begin refunding any unpaid charges since 1st March on 14th April 2020 and refunds will be applied daily until the end of April," it said.

"Customers do not need to take any action."

The bank said it is taking the step to assist customers who are impacted by Covid-19 to make alternative arrangements with those they owe money to, like utility companies and suppliers.

It will also give them time to seek payment holidays where applicable, the banks says.

The bank, like other lenders, has also waived contactless payment fees and has increased the contactless card transaction limit to €50.