Why We Are Re-introducing ATM Transaction Charges – Central Bank Of Nigeria

August 21, 2014 Busayo Finance/Money, Strategies & Solutions

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VENTURES AFRICA – The re-introduction of Automated Teller Machines (ATM) transaction charges in the nation’s financial sector will not affect the growth of financial inclusion in the country, the Central Bank of Nigeria (CBN) has said in defence of the new N65 ATM charge that will commence next month.
The apex bank says the new policy will not only allow the bank to serve its customers better; it would also stimulate a healthy competition among banks in the country.
Until December 2012, customers were charged N100 for transaction on other banks’ ATM, but this charge was removed to encourage the use of ATMs.
However, early this month the apex bank called
for the re-introduction of charges on ATM transactions.
The CBN said it noticed that people have abused the free cash withdrawal policy as some customers have abused the use of ATM, making multiple transactions, frustrating the objective of the cashless policy.
Moreover, it says the cost of maintaining ATMs is high and ATM owners need economic incentives to deploy and maintain these machines.
Now, customers who make ATM transactions on other bank’s ATM will be liable to pay N65 on the fourth transaction in a month. The charges on the first three transactions will be paid by the issuing bank.
“The truth is that (out) of the N100, N35 goes to the payment bank, which has now been completely waived,” CBN Banking and Payment System Department Director, Mr. Dipo Fatokun explained.
The N65 charge on ATM transactions will commence on September 1, 2014. Cash withdrawals at the ATMs of a customer’s bank however remain free.