Effective September 1, 2014, Nigerians
would be charged N65 when they make cash withdrawals from an ATM from a
bank other than theirs.
The Central Bank of Nigeria (CBN)
yesterday, August 13, 2014 issued a directed that re-introduced the
charge which had been abolished about two years ago.
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, Mr. Dipo Fatokun, was posted on the regulator’s website
yesterday.
The CBN in collaboration with the
Bankers’ Committee had in December 2012 transferred the payment of N100
remote-on-us ATM cash withdrawal transactions to issuing banks. This fee
used to be shared between the acquirers, issuers and switches.
However, on the commencement of the
arrangement in December 2012, banks (issuers) decided to waive the
issuer fee (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.
However, the central bank explained that
it took the latest decision as a result of the unintended consequences
on banks. This, it said had resulted in substantial cost burden incurred
by banks in defraying the cost for the service.
According to the CBN, the
re-introduction of the 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.
“September 1, 2014 shall be the
effective date for the implementation of the new fee,” it added. To this
end, it urged banks to conduct adequate sensitisation of their
customers on the policy.
“All ATM cash withdrawals on the ATM of issuing banks shall be at no cost to the cardholder,” it explained.
Meanwhile, in a separate circular on the
review of the operation of the NIBSS Instant Payment (NIP) system and
other electronic payment Options with similar features, the CBN
expressed its preparedness to further strengthen the risk aversion
measures put in place for the operations of the NIP system and other
electronic payment options.
“The CBN has directed the
categorisations of online transfer from low security to highly secured
transfer with specified limits. Banks are expected to achieve “Highly
Secured Online Funds Transfer” status within six months, that’s, with a
deadline of December 2014.
“Limits of N1 million (instant value)
and N10 million (next day value) shall be applied for NIP and other
electronic payment options with similar features, initiated by
individuals with effect from 18th August, 2015,” it stated.
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