CBN reviews ATM transaction fees, scrap free withdrawals

The Central Bank of Nigeria (CBN) has announced a review on the transaction fees for automated teller machines (ATMs) In a circular signed by John Onojah, acting director of the Financial Policy and Regulation Department, said the revised charges will take effect from March 1. According to the new policy, customers withdrawing from their bank […]

The Central Bank of Nigeria (CBN) has announced a review on the transaction fees for automated teller machines (ATMs)

In a circular signed by John Onojah, acting director of the Financial Policy and Regulation Department, said the revised charges will take effect from March 1.

According to the new policy, customers withdrawing from their bank ATMs (on-us transactions) will continue to enjoy free withdrawals.

However, a N100 fee per N20,000 withdrawals will be applied at on-site ATMs (those located at bank branches).

For withdrawals at ATMs of other banks (Not-on-Us transactions), an off-site withdrawal will attract a N100 fee plus a surcharge of up to N450 per N20,000 withdrawal.

The CBN clarified that the surcharge is the income of the “ATM deployer/acquirer and must be disclosed to consumers at the point of withdrawal”.

For international withdrawals using debit or credit cards, the CBN said banks and financial institutions are now permitted to apply “a cost-recovery charge equivalent to the exact amount charged by the international acquirer.

“Furthermore, 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,” CBN added.

The regulator said the move would address rising operational costs and enhance efficiency in the banking sector.

The last time ATM transaction charges were reviewed was in 2019, when the CBN reduced the withdrawal fees from N65 to N35.