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Monday, 25 August 2014

CBN clarifies charges on ATM

The Central Bank of Nigeria, CBN has thrown more light on the introduction of Fees on RemoteOn- Us, Automated Teller Machine, ATM transaction, saying cash withdrawal on ATM of a customers bank is free.

The CBN noted that the clarification became necessary following mixed reactions from the general public when the announcement of introduction of Fees on Remote-On-Us was made.
The CBNs Director, Corporate Communications Department, Mr. Ibrahim Muazu, in statement said The Central Bank of Nigeria (CBN) has noted some public comments on its recent circular in respect of fees/charges on the extended use of other banks Automated Teller Machines (ATMs).
These reactions have been mixed with most commentators showing great understanding and other stakeholders expressing clear lack of understanding of the rationale for this decision of the Bankers Committee.
According to him Cash withdrawal at the ATMs of a customers bank is free. He explained that Remote-on-Us transaction is when a card holder goes to the ATM machine of another Bank other than his or her own bank to make a withdrawal.
Continuing, Muazu, said 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 issuing banks. The N100 was never removed. It was only transferred to customers bank to pay, and this was intended to encourage/promote the use of ATMs nationwide.
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 banks ATM other than that of his/her bank. The N65 starts to apply from the 4th transaction at another banks ATM in a month.
Buttressing further on the introduction of Remote- on- Us, he said The charge is not intended to discourage financial inclusion. The CBN will not endorse any anti-customer policy. Charging of fees on interbank networks is a widely acceptable practice globally.
On the reasons for ATM charges, he said This to ensure customers get better services; To increase healthy competition among the banks; Transaction volumes at other banks ATM have increased astronomically due to the free Cash withdrawal at other banks ATM; The wear and tear as well as the frequency of servicing the ATMs have increased significantly.
Indeed, some customers were beginning to abuse the use of ATMs through countless daily withdrawals; This development has led to increase in cash transactions, which negate the Banks Cash-less policy.
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