So I stumbled on this news this morning and i just had to share. I reserve my comment o. Read below
Central Bank of Nigeria (CBN) has directed deposit money banks in the country to re-introduce a charge of N65 per transaction on cash withdrawals made on other banks’ Automated Teller Machines (ATMs) from September 1, 2014.
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.
In a document titled: “Circular on the Introduction of Fees on Remote-on-Us ATM Withdrawal Transactions,” signed by Dipo Fatokun, director, Banking and Payment System Department, the apex bank said that instead of N100 per withdrawal, customers using other banks’ ATMs will now pay N65
The CBN in collaboration with the Bankers’ Committee had in December 2012 transferred the payment of N100 remote-on-us ATM cash withdrawal transactions to issuing banks. This fee used to be shared between the acquirers, issuers and switches.
However, on the commencement of the arrangement in December 2012, banks (issuers) decided to waive the issuer fee (N35), which should have ordinarily been an income to them. Consequently, banks only bore the cost of N65 each time their customers use another banks’ ATM.
However, the central bank explained that it took the latest decision as a result of the unintended consequences on banks. This, it said had resulted in substantial cost burden incurred by banks in defraying the cost for the service.
According to the CBN, the re-introduction of the fee was to cover the remuneration of the 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 card holder, thereby making the first three remote-on-us transactions free for card holders, but to be paid for by the issuing bank.
“September 1, 2014 shall be the effective date for the implementation of the new fee,” it added. To this end, it urged banks to conduct adequate sensitization of their customers on the policy.
“All ATM cash withdrawals on the ATM of issuing banks shall be at no cost to the cardholder,” it explained
Source: Nigeria Communications week
New CBN Governor – Godwin Emefiele, I see you
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