CBN Reintroduces Charges On Cash Withdrawals On ‘Other Banks’ ATMs

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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.”

  • what kind of reality is this? this payment is not fair.(kind of bank Ebola).

  • Nasidi

    I am not in support of re introduction. Banks use customer money to make money. Use of ATM has reduced the cost of employing worker but still we have pay withdrawal charges. I suggest CBN should re consider their decisions

  • kizito

    Not good @ all… Sanusi shud come back…

  • uko ogechi

    no way, this is not acceptable by me. pls no one should remove one kobo from my money because the bank has been using my money to trade too

  • no,one

    For once I thaught CBN had considered its customer by removing the remote- on- us money witdrawal charges & now bringing it back after 2 yrs? (O_O) That’s babarious!!! Sanusi would not have removed it if there were to be any effect, coz am sure he took proper considerations befor its removal! This is coruption at work! Niger which way forward! Haba!!!

  • shonuyi gbenga

    these is unacceptable.infact you are just making things difficult for the poor masses.CBN should try not to reintroduce any charges again because you are making life difficult for masses.

  • rabson

    Poor government poor management

  • Nasiru

    Am just wandering what is happening to this country.one man make a correction on what will bring about progress to the citizen of the country and befor you know another will bring a different policy entirely without building on the one he meet rether he will try to spoil it the more.what a barbaric set of leader we have who don’t know their left or right all they are after is to find ways to steal money and the next thing they disappear without anyone asking them to give account of there office.
    sanusi did well by taking it off.i believe that he must have point out measure why it should be taking off. Does it mean that when the charges where taking off the system is not functioning again? Another is coming with a different idea to steal money for him self befor he find his square root. Those who are doing all this will be in for it some day.

  • dare

    Central bank of Nigeria are insane!!! so are the people reintroducing the charges…you guys think power is a game.

  • aloko

    CBN, rubbish, non- sense

  • aloko

    This is not good ooooooooo

    • sam

      CBNBoss, becos u want ur former Bank (Zenith) to have a super profit dis year that is why u are introducing it. There is God ooooo!

  • babs

    How sincere will this new policy regime? Knowing fully well that from the first withdrawal bank will place charges failure to accent to this you will not be allowed to cash your money. Further more banks charges on current account at the end of the month is there. Will this not amount to double charges? Sincerity must be given a proper consideration when implementation begin.

  • Bolade

    Discretional policies rather than Institutional policies at play! Why do I need to pay for withdrawing my money? CBN should tell us the guiding principle on number of ATM each bank should operate viser-vis the strategic locations. We need the gazette! Chikena!

  • cbn, there is GOD OOOOOOOOOO

  • Henrock

    Cbn should address the issue of pos in all supermarkets even in our market places so as to implement the cashles policy instead of reintroducing atm charges

  • Michael

    U people are negatively intelligent.

  • KSAM

    the reintroduction is just another means to exploit the populace, i strongly oppose it and CBN should not effect it come sept 1, 2014

  • phil

    I knew dis new CBN governor is a thief. He is out there to steal customers money. I had never been in support of his policies in the financial institutions. He will fail

  • Lukman

    The new CBN governor is Jim Ovia boy, he has to do the bidding of his boss.

  • Duke

    For what? this is too bad for the new governor.

  • Mat

    A lot comes to mind with this introduction of charges as these were not clearly stated in the statement released.

    1 – Suppose we make three withdrawals on the issuing bank’s ATM do we still get charged N65 using another bank’s ATM the fourth time?

    2 – Why the downward review of the charge from N100 to N65??? Do we (customers) get a refund of N35 for the period we were charged N100?

    3 – Was the banker’s committee not consulted before the removal by the former CBN boss? Why after about 2years the same committee complains of been unable to bear the charge? RIDICULOUS!!!

    In my opinion rather than reintroduce this charge, the banks should work towards having their ATM machines accessible to its customers. This way customers are encouraged to use the issuing bank’s ATM. We cannot progress as a country if we continue in this fashion.

  • uncle

    Nigerian regulations are up/down. Why reintroducing it again? Why can’t they talk of the inefficiency of the ATM, the cost of aquiring the card (N1050) and its short time of expiration (2yrs)?
    This is another chances of banks debiting customers unnecessarily, and there would be no proper record to show either one has withdraw up to 3 or 4 times a month. They should look into it proper. Let them reduce it to N15 per withdrawal to avoid confussion & cheating.