The Central Bank of Nigeria (CBN) has ordered deposit money banks to restart charging a fee of N65 per transaction on cash withdrawals from other banks ATMs.
The central bank’s directive, which was circulated among all banks on 13 August, will come into effect from 1 September 2014.
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A circular of the document titled: "Circular on the Introduction of Fees on Remote-on-Us ATM Withdrawal Transactions," signed by the director, banking and payment system department, CBN, Dipo Fatokun, was posted on the regulator’s website.
In December 2012, the CBN in collaboration with the Bankers’ Committee had transferred the payment of N100 remote-on-us ATM cash withdrawal transactions to issuing banks. This fee was divided between the acquirers, issuers and switches.
The new decision will help the banks to reduce the cost burden incurred in defraying the cost for the service. The central bank noted that the re-introduction of fee was to cover the remuneration of the 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 card holder, thereby making the first three remote-on-us transactions free for card holders, but to be paid for by the issuing bank.
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By GlobalData"All ATM cash withdrawals on the ATM of issuing banks shall be at no cost to the cardholder."
The central bank has asked all the banks to inform their customers about the new provision.
