CBN: "New ATM charges will discourage multiple daily withdrawals, encourage cashless policy"

The Central Bank of Nigeria (CBN) has said that the re-introduction of charges on the use of ATM cards was necessary to protect the cashless policy as its initial removal led to an increase in cash transactions with many customers abusing the use of the ATMs through multiple daily withdrawals. Multiple withdrawals it said did not encourage the cashless policy.

The apex bank recently announced the re-introduction of 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.

Immediately the new Central Bank Governo, Godwin Emefiele assumed office two months ago, many of the commercial banks mounted pressure for the re-introduction of ATM charges with many customers kicking against the proposal which have now been approved.

In a statement signed by the CBN’s Corporate Communications Director, Ibrahim Mu’azu, the CBN said that the development increased costs 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 bank’s ATMs due to the free cash withdrawals.

The CBN also noted that increased use of the ATMs increased their wear and tear and in turn cost of maintenance.

The statement read in part: “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 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.