CBN Says New Policy On ATM Cash Withdrawals Will Be Mutually Beneficial
The Central Bank of Nigeria (CBN) has stated that its newly introduced policy, which imposes fees on cash withdrawals from Automated Teller Machines (ATMs) of banks other than the customer’s own, is advantageous for both banks and their clients.
John Onojah, the Acting Director of the Financial Policy and Regulation Department at the CBN, made this assertion during an appearance on Channels Television’s Sunrise programme on Saturday.
He explained that the new policy aims to eliminate complaints regarding cash shortages at bank ATMs, while simultaneously assisting banks in recovering their operational costs.
“We have secured commitments from banks to ensure that customers will not encounter situations where ATMs are out of cash. We have established a minimum withdrawal limit of N20,000 to provide customers with more flexibility,” Onojah remarked.
“Additionally, we are working to ensure that even in remote areas, ATMs will be available outside of bank premises. However, it is important to note that deploying ATMs is a significant financial investment for banks, and I cannot disclose the exact costs involved in installing a single machine.
“Therefore, it is essential to encourage banks to pursue cost recovery. This policy is designed to strike a balance; while we consider the banks’ need to recover their expenses, we also want to guarantee that customers have continuous access to cash.”
Onojah emphasized that the fees apply solely to withdrawals made from ATMs of other banks, clarifying that customers will incur no charges when withdrawing from ATMs operated by their own financial institutions.
In a circular issued on Tuesday, the CBN informed all banks and financial institutions that customers would now incur a fee of ₦100 for every ₦20,000 withdrawn from ATMs of other banks.
