We've not reintroduced ATM charges --CBN

The Central Bank of Nigeria, CBN, yesterday said it has not
reintroduced charges on the use of Automated Teller Machines, ATMs as
being speculated.

The Director, Banking & Payments System Department of CBN, Mr. Dipo
Fatokun, who explained this to Vanguard after his remarks at the
meeting held by Nigeria Electronic Fraud Forum in Lagos, said: "It
is not a reintroduction per se . You have to agree with me that when
the amendment was made in November 2012, it used to be a N100 for any
remote-on-us withdrawal that you did. And you know that the
remote-on-us is when you as a card holder goes to the ATM of a bank
other than your bank to withdraw cash. It was removed then so that
people would be encouraged to go to other ATMs without paying for it.

But the truth is that as we said in the circular on the Introduction
of Fees on Remote-On-Us ATM Withdrawal Transactions recently, that
N100 included the N35 that goes to the issuing bank, which has now
been completely waived.
The issuing bank does not make any thing, but in going to other ATMs
to make withdrawal , your bank, that is, the acquirer bank incurs
cost of N65 which they pay to the switches and the owner of the ATM
that you are using.

Continuing, he said: "Between 2012 and recently when the review was
done, it was discovered that people have actually turned ATMs into
their personal purses because nothing is charged. Somebody needs
N500, or N1000, he will go to ATM and withdraw, he needs N2000, he
will go to ATM and withdraw, so that in a day some people can
patronise ATM for up to four or ten times. That has created a huge
cost burden for the banks that issue the cards. It was becoming
discouraging to them.

"So that is why we said, you can go to an ATM other than your bank ATM
to withdraw up to three times and no charges would be imposed on
you, but it is when you make the fourth withdrawal that you will
pay the N65 that ordinarily your bank would have paid on your
behalf. But of course if you go to your bank's ATM, the issuer, for
withdrawal you can withdraw as many times as you like without being
charged. So, it does not discourage financial inclusion. You should
bear in mind that when you talk of cashless regime, you are
encouraging people to do their transactions electronically other than
the use of cash. So it is a motivation for people to patromise the
ATM. "