CBN RE-INTRODUCES N65 ATM WITHDRAWAL FEE

The Central Bank of Nigeria yesterday announced the re-introduction of Automated Teller Machines (ATMs) transaction fee pegged at N65 per transaction beginning from September 2014.

The apex bank had in December 2012 suspended

the payment of N100 fee per transaction by customers.
A CBN  circular to the money deposit banks dated August 13, 2014 and signed by its director, banking and payment system department, Dipo Fatokun stated that the re-introduction of remote-on-us ATM cash withdrawal transactions fee would now be N65 per transaction to cover the remuneration of the switches, ATM monitoring and fit-notes processing by acquiring banks.
By implication, only ATM card holder who withdraw cash from the another bank’s ATM other than the issuing bank will be affected while all ATM cash withdrawal on the ATM of issuing banks shall be no cost to the card holder.
“The CBN in collaboration with the bankers committee had in December 2012 transferred the payment of N100 fee on Remote-on-us ATM cash withdrawal transactions to issuing bank. This fee is shared between the acquirers, issuers and switches. On commencement of the arrangement in December 2012, banks (issuers) decided to waive the issuer fee of N35, which should have ordinarily been an income to them. Consequently, banks only bore the cost of N65 each time their customers use another banks’ ATM,” the circular read in part.
The CBN said “as a result of the unintended consequences of the decision, which has resulted in substantial cost burden incurred by banks in defraying the cost for the service, the payment structure for card carrying bank customers is hereby review(ed) in line with present realities.”