The Central Bank of Nigeria (CBN)
yesterday directed deposit
money banks in the country to
re-introduce a charge of N65 per
transaction on remote-on-us
Automated Teller Machines
(ATMs) cash withdrawals.
The policy takes effect from
September 1, 2014.
Remote-on-us are transactions
done by a card holder on
another bank’s ATM. The central
bank stated this in a circular
addressed to all banks, dated
August 13, 2014.
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.
Source : http://www.thisdaylive.com/articles/cbn-reintroduces-charges-on-cash-withdrawals-on-other-banks-atms/186280/
