CBN Re-introduces ATM N65 Cash Withdrawal Charges
The re-introduction of the ATM charges came almost two years after the CBN and the Deposit Money Banks cancelled the N100 ATM charge in December 2012.
The new directive for the reintroduction of the charge was posted on the CBN website, but instead of N100 per withdrawal, customers using other banks’ ATMs will now pay N65.
According to the order, which was contained in the circular signed by the Director, Banking and Payment Systems Department, CBN, Mr. Dipo Fatokun, the central bank and the DMBs agreed to re-introduce the ATM charges because the cost of transaction was becoming too burdensome for the banks to continue to bear.
Fatokun also said the charge would become effective on the fourth ATM withdrawal in a month, thus making the first 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 sensitisation 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 collaboration with the Bankers’ Committee, had in December 2012 transferred the payment of the N100 fee on ‘Remote-on-us’ ATM cash 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.”
Source: Business News