CBN Reverses Sanusi’s Policy On Payment For Using ATM Cards In Other Banks

CBN Reverses Sanusi’s Policy On Payment For Using ATM Cards In Other Banks
August 15 05:03 2014 Print This Article

Godwin-Emefiele_fpThe Central Bank of Nigeria (CBN), has sad that anyone who uses his/her ATM card on a machine belonging to another bank would now pay N65 monthly beginning from September 1.

The Central Bank stated this in its new guidelines to restructure the fees for banks automated teller machine, ATM, card users.

The CBN, in a new circular on Wednesday to all banks on the introduction of fees on remote-on-us ATM withdrawal transactions, said on the commencement of the new guideline, banks would no longer bear the N65 charge whenever their customers make withdrawals using other banks’ ATMs.

CBN under its former governor, Sanusi Lamido Sanusi had cancelled any payment for using ATM cards in another bank apart from the issuing bank, the development that was applauded by Nigerians.

Following the introduction of ATM services in December 2012, CBN’s Bankers’ Committee had fixed the charge for all cash withdrawal transactions at N100 per month.

The payment of the fees was shared between the customers, the banks and the ATM switch terminal operating companies. While banks paid N65 each time their customers used other banks’ ATMs, about N35, which should have been part of their income, was waived for the customers.

However, the CBN, in the latest guidelines issued by the Director, Banking & Payments System Department, Dipo Fatokun, said the burden of defraying the high cost of ATM use by customer on banks had necessitated a review of the payment structure for card carrying bank customers to accommodate current realities.

Consequently, the CBN said, starting September 1, cash withdrawal transactions by banks customers using other banks’ ATMs would attract a charge of N65 per month.

The charge, the CBN said, would cover the remuneration of the switch terminal operators, ATM monitoring and fit-notes processing charges by acquiring banks.

“The new charge shall apply as from the 4th ‘Remote-on-us’ withdrawals (in a month) by a card holder, thereby making the first three ‘Remote-on-us’ transactions free for the card holder, but to be paid for by the issuing bank,” the circular said.

The CBN stressed the need for banks to ensure that their customers were adequately sensitised on the revised fee structure, pointing out that all cash withdrawals on the ATM of issuing banks would continue to be at no cost to the card holder.

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