The Central Bank of Nigeria (CBN) has issued a clarification on the newly revised N100 charge for withdrawals at Automated Teller Machines (ATMs) belonging to other banks, commonly referred to as “Not-On-Us” transactions. While initially met with some confusion, the CBN has emphasised that this fee applies to each N20,000 withdrawn, regardless of the total amount.
This move, aimed at fostering a more equitable and sustainable banking environment has significant implications for Nigerian consumers. While eliminating the previous three free monthly withdrawals at other banks’ ATMs may seem like a setback, the CBN’s primary objective is to discourage customers from circumventing charges by making numerous small withdrawals.
“The reason for applying the fee for every N20,000 withdrawal is to prevent customers from being compelled to break their withdrawals to less than N20,000 per transaction,” the CBN explained in a Frequently Asked Questions (FAQs) document.
This approach, while potentially inconvenient for some, aims to ensure that banks are adequately compensated for providing ATM services to customers of other financial institutions. It’s crucial to remember that these fees are not arbitrary; they are designed to cover the costs associated with maintaining and operating the ATM network.
However, the CBN has not left consumers entirely out in the cold. The apex bank has explicitly stated that banks are obligated to allow customers to withdraw up to N20,000 per transaction. Any bank that restricts customers to smaller withdrawals, despite sufficient funds in their accounts, will face regulatory action.
“Any bank that compels a customer with sufficient funds in her account to withdraw less than N20,000 per transaction against the customer’s desire for a higher sum would be contravening this regulation’s spirit and sanctioned appropriately,” the CBN warned.
This assurance is particularly important for consumers who rely heavily on ATM withdrawals, especially those in remote areas with limited access to bank branches. The CBN’s stance underscores the importance of consumer protection and ensures that banks remain accountable for their actions.
Furthermore, the CBN has encouraged consumers to report any instances where banks deny them the right to withdraw up to N20,000 per transaction. This proactive approach empowers consumers to actively participate in the regulatory process and ensures that their concerns are addressed promptly.
The CBN’s clarification also provides a clear distinction between on-site and off-site ATMs. On-site ATMs are located within or directly affiliated with a bank branch, while off-site ATMs are typically found in locations like shopping malls, fuel stations, and other public areas.
For off-site ATM withdrawals, the CBN has maintained a surcharge limit of N500 per N20,000. This transparency allows consumers to make informed decisions about their withdrawal options and choose the most cost-effective method.
While the new ATM fee structure may initially present some challenges for consumers, the CBN’s emphasis on consumer protection and its commitment to ensuring fair and equitable banking practices offer a degree of reassurance.
It is crucial for consumers to familiarise themselves with the new regulations, understand their rights, and report any instances of non-compliance to the CBN. By working together, consumers and regulators can ensure a more transparent and consumer-friendly banking environment for all Nigerians.
