Starting from September 1st, 2014, Bank customers will pay a token for money withdrawals made on other banks’ Automated Teller Machines, the Central Bank of Nigeria said in an order discharged on Wednesday.
The reintroduction of the ATM charges came just about two years after the CBN and the Deposit Money Banks drop the N100 ATM charge in December 2012.
The new order for the reintroduction of the charge was posted on the CBN website, however rather than N100 for every withdrawal, customers using other banks’ ATMs will now be charged N65.
As indicated by the request, which was contained in the circular signed by the Director, Banking and Payment Systems Department, of CBN, Mr. Dipo Fatokun, made accessible to the Journalist, the national bank and the Dmbs consented to re-introduce the ATM charges in light of the fact that the cost of transaction was getting to be excessively difficult for the banks to to bear
Fatokun likewise said the charge would get to be deducted on the fourth ATM withdrawal in a month, accordingly making the initial three withdrawals on other banks’ ATMs within the month free.
The circular dated August 13, 2014, read, “The CBN hereby issues the following directives: The re-introduction of ‘Remote-on-us’ ATM cash withdrawal transaction fee, which will now be N65 per transaction, to cover the remuneration of switches, ATM monitoring and fit-notes processing by acquiring banks; the new charge shall apply as from the fourth ‘Remote-on-us’ withdrawal (in a month) by a cardholder, thereby making the first three ‘Remote on us’ transaction free for the cardholder, but to the paid by the issuing bank.
“September 1, 2014 shall be the effective date for the implementation of the new charge; banks are expected to conduct adequate sensitization to the customers on the introduction of the new fee; all ATM cash withdrawals on the ATM of issuing banks shall be at no cost to the cardholder.”
The CBN, in conjunction with the Bankers’ Committee, had in December 2012 exchanged the installment of the N100 charge on ‘Remote-on-us’ ATM money withdrawal transactions to the issuing banks. The fee was shared between the acquiring bank, issuing bank and switch companies at the commencement of the arrangement.
However, Fatokun, in the latest circular, noted that issuing banks had during the commencement of the arrangement in 2012 decided to waive the issuer fee of N35, which should ordinarily have been an income to them.
He further said, “Consequently, banks only bore the cost of N65 each time their customers use another banks’ ATMs.
“However, as a result of the unintended consequences of the decision, which has resulted in substantial cost burden incurred by banks in defraying the cost of the service, the payment structure for card carrying bank customers is hereby reviewed in line with present realities.”