ATM Withdrawal Charges Re-introduced

The Central Bank of Nigeria, CBN, has disclosed that from September 1, 2014, withdrawals from the Automated Teller Machines, ATMs, will now attract the sum of N65. This was contained in a statement issued on Wednesday by the Director, Banking and Payment Systems Department, Dipo Fatokun.

Fatokun explained that the new charge will only be applicable when the card holder makes withdrawal on another bank’s ATM.

“September 1, 2014 shall be the effective date for the implementation of the new charge; banks are expected to conduct adequate sensitisation 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,” the statement said.

In December 2012, the CBN cancelled the initial N100 being charged by banks for withdrawals on other bank’s ATMs.

According the apex bank, the cost of transaction was becoming too burdensome for the banks to continue to bear, which forced the reintroduction of the new ATM transaction charges. He further explained that the first withdrawals in a month would be free, while the fourth would attract the N65 charge.

“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,” the CBN said.