The Central Bank of Nigeria, CBN has thrown more light on the introduction of Fees on Remote–On- Us, Automated Teller Machine, ATM transaction, saying cash withdrawal on ATM of a customer’s bank is free.
The
CBN noted that the clarification became necessary following mixed reactions
from the general public when the announcement of introduction of Fees on
Remote-On-Us was made.
The
CBN’s Director, Corporate Communications Department, Mr. Ibrahim Mu’azu,
in statement said “ The Central Bank of Nigeria (CBN) has noted some public
comments on its recent circular in respect of fees/charges on the extended use
of other banks’ Automated Teller Machines (ATMs).
These
reactions have been mixed with most commentators showing great understanding
and other stakeholders expressing clear lack of understanding of the rationale
for this decision of the Bankers’ Committee.”
According
to him “Cash withdrawal at the ATMs of a customer’s bank is free.” He explained
that Remote-on-Us” transaction is when a card holder goes to the ATM machine of
another Bank other than his or her own bank to make a withdrawal.
Continuing,
Mu’azu, said “In December 2012, the CBN, in collaboration with the Bankers’
Committee, transferred the payment of N100 fee on “Remote-on-us” ATM cash
withdrawal transactions to issuing banks. The N100 was never removed. It was
only transferred to customer’s bank to pay, and this was intended to
encourage/promote the use of ATMs nationwide.
Having
sufficiently raised customers awareness, the first three “Remote-on-Us”
transactions in a month are FREE for the card holder but paid for by the
issuing bank. The N65 charge only applies when a customer withdraws cash from
another bank’s ATM other than that of his/her bank. The N65 starts to apply
from the 4th transaction at another banks’ ATM in a month.”
Buttressing
further on the introduction of Remote- on- Us, he said “The charge is not
intended to discourage financial inclusion. The CBN will not endorse any
anti-customer policy. Charging of fees on interbank networks is a widely
acceptable practice globally.”
On
the reasons for ATM charges, he said “This to ensure customers get better
services; To increase healthy competition among the banks; Transaction volumes
at other banks’ ATM have increased astronomically due to the free Cash
withdrawal at other banks’ ATM; The wear and tear as well as the frequency of
servicing the ATMs have increased significantly.
Indeed,
some customers were beginning to abuse the use of ATMs through countless daily
withdrawals; This development has led to increase in cash transactions, which
negate the Bank’s Cash-less policy.”
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