Why We Reintroduced Charges On ATM Transactions CBN

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Following the reactions of bank customers to the re-introduction of charges on the use of automated teller machines (ATMs) of banks other than the card issuer, the Central Bank of Nigeria (CBN) has said the move is to ensure that customers get better service and to promote the cashless policy.

In a statement signed by its director, Corporate Communications Department, Ibrahim Muazu, the CBN said the removal of the N100 ATM charge had led to an increase in cash transactions and that some customers abused the use of ATMs through multiple daily withdrawals, a downside to its cashless policy.

The apex bank confirmed that this had also led to increased cost for the banks as they had to pay for the use of other banks ATMs by their customers with an astronomical increase in transaction volumes at other banks ATMs due to the free cash withdrawals.

It noted further that with increased use, the wear and tear of ATMs had increased significantly, adding that maintaining an ATM is expensive and it requires economic incentive for owners to deploy and maintain these machines.

If a part of this cost goes unabated, the banks may be forced to reject transactions coming from their customers at another bank ATMs, thereby frustrating the interoperability of payment systems, the statement read in part.

The CBN assured banks customers that the long-term interest and welfare of all bank customers remain the goal of all banking policies, adding that it will not endorse any anti-customer policy. It also debunked claims that the charge was intended to discourage financial inclusion, saying that the charging of fees on interbank networks was a widely acceptable global practice.

The CBN recently announced the re-introduction of the N65 ATM charge on the fourth and subsequent transactions within a month by a customer on the ATM of other banks. The first three transactions are free just as transactions on the issuing banks ATM.