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We've not reintroduce ATM charges...CBN

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1We've not reintroduce ATM charges...CBN Empty We've not reintroduce ATM charges...CBN on 16th August 2014, 6:32 am


LAGOS—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.

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