The Central Bank of Nigeria, CBN, has threatened to sanction banks that limit Automated Teller Machines (ATM) withdrawal to less than N20,000 per transaction.
The apex bank made the disclosure in a document addressing concerns over the reviewed fees on ATM withdrawal.
Recall that CBN on Tuesday increased ATM transaction withdrawal fees. This, it stated would come into force from March 1st. The apex bank stated that henceforth, bank customers will pay N100 charge for every N20,000 withdrawal from the on-site ATM of other banks.
This was contained in a circular by CBN to banks and other financial institutions across the country.
The CBN said, “ATM Transaction Fees On-Us for customers withdrawing at the ATM of the customer’s financial institution in Nigeria with No charge.
“Not-On-Us for withdrawal from another institution’s ATM in Nigeria; On-site ATMs will attract a charge of N100 per N20,000 withdrawal.
“Off-site ATMs will attract a charge of N100 plus a surcharge of not more than N500 per N20,000 withdrawal.
“The surcharge, which is an income of the ATM deployer/acquirer, shall be disclosed at the point of withdrawal to the consumer.
“International Withdrawals (per transaction) whether debit/credit card: Cost Recovery – exact charge by international acquirer.
“Furthermore, the three free monthly withdrawals allowed for Remote-On-Us (other bank’s customers/Not-On-Us consumers) in Nigeria under Section 10.6.2 of the Guide shall no longer apply.”
Reacting to widespread concerns over the limit on ATM cash withdrawal by banks, the CBN yesterday released a list Frequently Asked Question, FAQ. This was in the bid to clarify implementation of the new charge.
The apex bank noted that the charges for withdrawals made from other banks on-site and off-site ATMs are based on banks allowing customers to withdraw up to N20,000 per transaction.
“The fees are based on banks allowing customers to withdraw up to N20,000 per transaction. Any bank that compels a customer with sufficient funds in his/her account to withdraw less than N20,000 per transaction against the customer’s desire for a higher sum would be contravening this regulation’s spirit and sanctioned appropriately.
“Consumers that are denied the right to withdraw up to N20,000 per transaction are encouraged to file a complaint with the CBN using cpd@cbn.gov.ng.”
CBN also explained that banks cannot charge more than the stated fees. The apex bank, however, added that a bank can charge a lower amount depending on its cost structure, among other things.
CBN said, “The charges and surcharges are capped. Thus, banks and other financial institutions are not allowed to charge more than the fees prescribed in the circular.
“Note also that though the surcharge per transaction is capped, there is flexibility for a bank to charge a lower amount. depending on its cost structure and business development drive.
How to avoid paying ATM transaction fees, the apex bank said: “You should withdraw money from your bank’s ATM (On-Us transaction). This would help you to avoid the transaction fees.
“Additionally, limiting your use of off-site ATMs is advisable to minimise the surcharge.
“Further, consumers can explore other payment channels such as mobile apps, POS devices for payments, etc,” CBN stated.
source: Punch
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