CBN reintroduces ATM withdrawal fee

There seems to inconsistences in the policies of President Jonathan’s led federal government as the Central Bank Nigeria (CBN) has reintroduced Automated Teller Machine (ATM) fee it scrapped in December, 2013.

The apex bank said from September 1, customers will commence payment of N65 as against the N100 fee charged previously.

CBN Director, Banking & Payments System Department, ‘Dipo Fatokun, who made this known in a circular, the re-introduction of Remote-on-us ATM cash withdrawal fee of N65per transaction, is to cover the remuneration of the switches, ATM monitors and fit-notes processing by acquiring banks.

He explained that the new charge shall apply as from the fourth transaction in another bank’s ATM.

“The fee shall apply in ‘’Remote-on-us’’ withdrawal (in a month) by a card holder, thereby making the first three (3) ‘remote-on-us transactions free for the card holder, but to be paid for by the issuing bank. September 1, 2014 shall be the effective date for the implementation of the new fee,” he said.

However, all ATM cash withdrawals on the machine of issuing banks shall be at no cost to the card holder.

He advised banks to conduct adequate sensitisation to their customers, on the introduction of the new fee.

The CBN in collaboration with the Bankers Committee had in December, 2012, transferred the payment of N100 fee on ‘’Remote-on-us’’ ATM Cash withdrawal transactions to issuing banks.

This fee is shared between the acquirers, issuers, and switches. On the commencement of the arrangement in December 2012, banks (issuers) decided to waive the issuer fee (N35), which should have ordinarily been an income to them. Consequently, banks only bore the cost of (N65) each time their customers use another banks’ ATM.

The CBN and the Bankers Committee on Tuesday November 13, unanimously agreed to scrap all charges associated with the use of ATM.

This agreement was the outcome of a meeting between the Bankers’ committee made up of Chief Executive Officers of Deposit Money Banks, and directors and top officials of the CBN.