News Column

Why N65 ATM Charges Is Relevant - CBN

August 21, 2014

Kayode Ekundayo

Central Bank of Nigeria (CBN), yesterday, for the umpteenth time, explained the rationale behind the re-introduction of fees/charges on the extended use of other banks' Automated Teller Machines (ATMs), saying the action was meant to ensure continued functioning of ATMs in the country.

A press release issued by the apex regulatory bank's

Director, Corporate Communications, Ibrahim Mu'azu, said cash withdrawal at the ATMs of a customer's bank remained free and customer should only pay N65 per month when he or she has used ATM machine belonging to another bank to make withdrawal.

It clarified that the earlier introduced N100 transaction fee was never abolished but transferred to customer's bank to pay in order to encourage the use of ATMs nationwide.

The statement said: "Having sufficiently raised customers' awareness, 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 ATMs other than that of his or her bank. The N65 starts to apply from the fourth transactions at another bank's ATM in a month."

The statement said that the charge was not intended to discourage financial inclusion or endorse any anti-customer policy, adding that charging of fees on interbank networks is a global practice.

It, however, lamented that some customers were in the habit of abusing the ATMs through countless number of daily withdrawals.

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Source: AllAfrica

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