News Column

CBN Explains Reintroduction of ATM Charges

August 20, 2014



The Central Bank of Nigeria (CBN) has said that the reintroduction of charges on Automated Teller Machines (ATMs) Transaction is to encourage better services to customers.

This is contained in a statement signed by Ibrahim Muazu, Director Corporate Communications of the bank issued in Abuja on Wednesday.

It stated that the charges on ATM were reintroduced to ensure that customers get better services and to increase healthy competition among the banks.

According to the statement, transaction volumes at ATMs in other banks' have increased astronomically due to the free cash withdrawal at other banks' ATM.

The statement stated that the wear and tear as well as the frequency of servicing the ATMs had increased significantly.

This, it stated needed to be tackled to enable the banks carry out their services effectively.

It stated that it had been observed that some customers were beginning to abuse the use of ATMs through countless daily withdrawals.

"This development has led to increase in cash transactions, which negate the bank's cashless policy.

"Maintaining ATM is expensive and it requires economic incentive for owners to deploy and maintain these machines," it stated.

The statement stated that if part of the cost goes unabated, the banks might be forced to reject transactions coming from their customers at another bank's ATM.

This, it stated, would lead to frustrating the interoperability of payment systems.

It stated that the apex bank had reassured the public that the long term interests and welfare of all bank customers remained the goal of all banking policies.

The statement stated that the cash withdrawal at the ATMs of a customer's bank was free.

"Remote-on-Us" transaction is when a card holder goes to the ATM machine of another bank other than his or her own bank to make a withdrawal.

"The CBN, in collaboration with the Bankers' Committee in December 2012, transferred the payment of N100 fee on "Remote-on-Us" ATM

cash withdrawal transactions to issuing banks," it said.

It stated that the N100 was never removed but was only transferred to customer's bank to pay.

The statement stated that the intension was to encourage and to promote the use of ATMs nationwide.

According to the statement, the first three "Remote-on-Us" transactions in a month are FREE for the card holder but paid for by the issuing bank.

"The N65 charge only applies when a customer withdraws cash from another bank's ATM other than that of his/her bank.

" The N65 starts to apply from the fourth transaction at another banks' ATM in a month," it stated.

It stated that the charge was not intended to discourage financial inclusion and that CBN would not endorse any anti-customer policy

It stated that charging of fees on interbank networks was a widely acceptable practice globally.


For more stories on investments and markets, please see HispanicBusiness' Finance Channel



Source: AllAfrica


Story Tools






HispanicBusiness.com Facebook Linkedin Twitter RSS Feed Email Alerts & Newsletters