CBN To Introduce N65 ATM Cash Withdrawal Fee From September 1

 

From September 1, 2014 bank customers will pay a fee of N65 for cash withdrawals made on other banks’ Automated Teller Machines. This according to a Central Bank of Nigeria directive released on Wednesday 13th August 2014.

The re-introduction of the ATM charges comes almost two years after 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 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.”

Culled from Punch