The Central Bank of Nigeria (CBN) says its recently announced policy imposing charges on cash withdrawal by customers from Automated Teller Machines (ATMs) of banks other than theirs, is mutually beneficial to both the banks and customers.

CBN?s Acting Director, Financial Policy and Regulation Department, John Onojah, stated this on Channels Television?s Sunrise programme on Saturday.

He said that with the implementation of the new policy, the complaints of shortage of cash at bank ATMs will be a thing of the past, while banks will be helped to recover costs on the other hand.

?We have gotten the commitment of the banks to ensure that you don?t go to the ATMs and be told that there is no money. We have ensured that when you get to the bank, at least we have set a minimum of N20,000 that you can withdraw at your own wish,? Onojah said.

?The third one is to say that even in remote locations, you will have machines that are there, not on the bank premises. Then on the side of the banks, deploying machines are quite expensive, they are capital intensive, I wouldn?t tell you how much it costs a bank to deploy just one machine.

?And so, we need to be able to encourage them to at least do what we call cost recovery. It is a balanced circular that came out. While we look at the side of the bank, at least they should be to recover their cost, we also want to ensure that the consumer, the customer to the bank at any point in time have access to cash.?

Onojah reiterated that the charges are only for withdrawal from other banks ATMs, adding that there are no costs for customers any time they withdraw money from ATMs owned by financial institutions that they bank with.

The CBN in a circular on Tuesday to all banks and financial institutions announced that customers withdrawing from the ATM of other banks would now be charged ?100 per every ?20,000.

?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,? the circular partly read.

The CBN directed banks and other financial institutions to apply the following charges with effect from March 1, 2025.

The CBN said for off-site ATMs ? automated teller machines not on a bank?s premises ? like those at shopping malls, eateries and other public places ? a surcharge of not more than ?500 per every ?20,000 will apply in addition to the statutory ?100 fee for withdrawals by customers of other banks? ATMs. (Channels TV)

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