The Central Bank of Nigeria (CBN) yester­day shed light on the recent Bankers Committee decision on charges for ex­tended use of other banks’ Automated Teller Machines (ATMs) by depositors.
In a press statement, Wednesday, signed by Ibra­him Mu’azu, Director, Cor­porate Communications De­partment, the apex bank said it was compelled to make the clarification following stake­holders’ reaction on its earlier circular on the subject-matter, which tended to show that many misunderstood the ra­tionale behind the policy.
Yesterday’s public com­munication it explained was to further explain the ratio­nale for the measure taken to ensure that ATMs across the country continue to function to the satisfaction of all bank customers.
According to the CBN, Cash withdrawal at the ATMs of a customer’s bank is free as “Remote-on-Us” transaction cost will apply only when a card holder goes to ATM ma­chine of another bank to make a withdrawal.
It recalled however that the Bankers Committee had in December 2012 agreed to transfer payment of N100 fee on “Remote-on-us” ATM cash withdrawal transactions to issuing banks, stressing that the N100 charge on use of the machines was never removed but only transferred to cus­tomer’s bank to pay.
The strategy according to the CBN was intended to promote the use of ATMs nationwide, and that having sufficiently raised custom­ers awareness, the first three “Remote-on-Us” transactions in a month are FREE for the card holder but paid for by the issuing bank.
Meanwhile the bank fur­ther stated that the N65 charge only applies when a customer withdraws cash from another bank’s ATM other than that of his/her bank from the 4th transaction at another banks’ ATM in a month.
The apex bank explained that the charge was not in­tended to discourage finan­cial inclusion since it will not endorse any anti-customer policy.
It explained however that charging of fees on interbank networks is a globally accept­able practice in which Nigeria would not be an exception.
Among the reasons ad­duced by the apex bank for ATM charges include the need to ensure customers get better services and increase healthy competition among the banks.
It also pointed out that transaction volumes at other banks’ ATM have increased astronomically due to the free cash withdrawal at other banks’ ATM and to cater for the wear and tear as well as the fact that the frequency of servicing the ATMs have in­creased significantly.
It also observed that some customers were beginning to abuse the use of ATMs through countless daily with­drawals, a development that has led to increase in cash transactions, which negate its Cash-less policy.

Why Bankers Committee endorsed ATM charge –CBN