Some bank customers have kicked against the decision of the Central Bank of Nigeria to scrap the free withdrawals on other banks’ Automated Teller Machines and the introduction of N100 for withdrawals of N20,000.

They expressed their reservations on Tuesday following the release of the CBN circular, which was signed by the Acting Director of the Financial Policy and Regulation department, John Onojah.

According to the circular titled ‘Review of Automated Teller Machine Transaction Fees,’ the CBN has eliminated the three free monthly withdrawals previously allowed for customers using other banks’ ATMs.

It read, “The three free monthly withdrawals allowed for Remote-On-Us (other bank’s customers/Not-On-Us consumers) in Nigeria under Section 10.6.2 of the Guide shall no longer apply.”

Under the new directive, withdrawals made from a customer’s bank ATM will remain free. However, customers using another bank’s ATM will now be charged N100 per N20,000 withdrawal when using ATMs located within bank premises. For withdrawals made at off-site ATMs, a charge of N100 per N20,000 withdrawal will apply, along with a surcharge of up to N500. The surcharge, which will be an income of the ATM deployer or acquirer, must be disclosed at the point of withdrawal.

The CBN also stated that international ATM withdrawals would be charged at the exact rate set by the international acquirer. The apex bank attributed the review to rising costs and the need to enhance ATM operations’ efficiency.

The circular read, “In response to rising costs and the need to improve the efficiency of Automated Teller Machine (ATM) services in the banking industry, the Central Bank of Nigeria has reviewed the ATM transaction fees prescribed in Section 10.7 of the extant CBN Guide to Charges by Banks, Other Financial and Non-Bank Financial Institutions, 2020 (the Guide).

“This review is expected to accelerate the deployment of ATMs and ensure that appropriate charges are applied by financial institutions to consumers of the service. Accordingly, banks and other financial institutions are advised to apply the following fees with effect from March 1, 2025.”

Following the circular, the Chairman of the Bank Customers Association of Nigeria, Dr. Uju Ogubunka, in a chat with The PUNCH, said the increase wasn’t such a bad idea given the state of the economy but expressed concerns about the rate of increase.
https://punchng.com/bank-customers-kick-as-cbn-scraps-free-atm-withdrawals/