By Yakubu LAAH InvestAdvocate
Lagos (INVESTADVOCATE)-Bank customers will from September 01 pay N65 for cash withdrawals made from other banks’ Automated Teller Machines (ATMs) the Central Bank of Nigeria (CBN) said on Wednesday.
According to the circular dated August 13, 2014 and signed by Dipo Fatokun, director, banking and payment systems department of the CBN, the apex bank and Deposit Money Banks (DMBs) agreed to re-introduce the ATM charges because the cost of transaction was becoming too high for the banks to continue to bear.
However, Fatokun said the charge would become effective on the fourth ATM withdrawal in a month, making the first three withdrawals on other banks’ ATMs within the month free.
The circular reads thus: “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 sensitization 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.” Then circular said.
In December 2012, the CBN and the bankers’ committee, agreed and transferred the payment of the N100 fee on ‘Remote-on-us’ ATM cash withdrawal transactions to the issuing banks.
According to Fatokun, the fee was shared between the acquiring bank, issuing bank and switch companies at its early stages.
Fatokun, in the circular, said that issuing banks in the commencement of the arrangement in 2012 decided to waive the issuer fee of N35, which should ordinarily have been an income to them.
“Consequently, banks only bore the cost of N65 each time their customers use another banks’ ATMs,’’ he said
“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,” director, banking and payment systems department of the CBN said.
