CBN re introduces N65 atm charge on withdrawals... Read here >>

Banks customers will from September 1, 2014 pay a token for cash
withdrawals made on other banks’ Automated Teller Machines, the
Central Bank of Nigeria said in a directive released on Wednesday.
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.
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 now 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.”
The CBN, in collaboration with the Bankers’ Committee, had in December
2012 transferred the payment of the N100 fee on ‘Remote-on-us’
ATM cash withdrawal transactions to the issuing banks.
The fee was shared between the acquiring bank, issuing bank and
switch companies at the commencement of the arrangement.
However, Fatokun, in the latest circular, noted that issuing banks had
during the commencement of the arrangement in 2012 decided to
waive the issuer fee of N35, which should ordinarily have been an
income to them.
He further said, “Consequently, banks only bore the cost of N65 each
time their customers use another banks’ ATMs.
“However, as a result of the unintended consequences of the decision,
which has resulted in substantial cost burden incurred by banks in
defraying the cost of the service, the payment structure for card
carrying bank customers is hereby reviewed in line with present
realities.”