News Column

N65 ATM Withdrawal Charge Takes Effect Today

September 1, 2014

Sola Alabadan

The Automated Teller Machine (ATM) cash withdrawal transaction fee of N65 re-introduced by the Central Bank of Nigeria (CBN) takes effect today September 1.

Consequently, any bank customer who use another banks' ATM more than three times in a month will be charged N65 per for the fourth transaction beginning from this month. The first three withdrawals from another banks' ATM are free for the card holder, but the fee will be paid by the issuing bank.

Although the re-introduction of ATM cash withdrawal transaction fee had generated lots of controversies among the teeming populace, the CBN has also justified that charging of fee on interbank networks is a widely acceptable practice globally.

The banks have also been advising their customers through Short Message Service (SMS) to always withdraw cash from their own banks' ATM to avoid the charge.

While the ATM withdrawal fee of N100 was suspended by the CBN in December 2012, the apex bank explained that it was never cancelled but that it was rather transferred to the banks.

In a statement signed by Director, Corporate Communications Department, Ibrahim Muazu, the CBN said the re-introduction of ATM cash withdrawal transaction charge of N65 was "not intended to discourage financial inclusion" and that "charging of fee on interbank networks is a widely acceptable practice globally."

"In December 2012, the CBN in collaboration with the bankers' committee, transferred the payment of N100 fee on 'Remote-on-us' ATM cash withdrawal transactions to the issuing bank.

"The N100 was never removed. It was only transferred to customer's banks to pay and this was intended to encourage/ promote the use of ATMs nationwide," the CBN stated.

The apex bank maintained that it would never encourage any anti-customer policy.

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Source: AllAfrica

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