CBN: ATM Withdrawal Charges Will Increase Competition among Banks

  As part of efforts to enlighten bank customers on its decision to introduce N65 on remote-on-us automated teller machines (ATMs) transactions in the country, the Central Bank of Nigeria (CBN) yesterday maintained that the policy would ensure customers get better services from banks. The central bank also insisted that the fee would engender healthy competition among banks. It noted that transaction volumes at other banks’ ATMs had increased astronomically due to the free cash withdrawal at ATMs. The wear and tear as well as the frequency of servicing the ATMs has increased significantly. Indeed, some customers were beginning to abuse the use of ATMs through countless withdrawals. This development has led to increase in cash transactions, which negates the bank’s cashless policy, the CBN added in a notice on its website yesterday. Furthermore, the banking sector regulator argued that maintaining ATMs is expensive as it requires economic incentive for owners to deploy and maintain the facility. If a part of this cost goes unabated, the banks may be forced to reject transactions coming from their customers at another bank ATMs, thereby frustrating the interoperability of payment systems. The CBN wishes therefore to reassure the public that the long term interest and welfare of all bank customers remain the goal of all banking policies, it explained.

Thisday Newspaper