CBN cuts ATM withdrawal charge to N35 from Jan. 2020

Central Bank of Nigeria (CBN)

The Central Bank of Nigeria (CBN) has cut charges for cash withdrawals from other banks’ Automated Teller Machines (ATM), from N65 to N35, after the third withdrawal within one month beginning from January 2020. The apex bank also reviewed other charges transactions platform in a fresh bank charges review guidelines.

The new Guide replaces the Guide to Charges by Banks and Other Financial Institutions issued in 2017 and takes effect from January 1, 2020, and may be reviewed from time to time to reflect changes in the business environment.

The Director, corporate communications, central Bank of Nigeria, Isaac Okorafor yesterday said highlights of the new Guide include removal of Card Maintenance Fee (CAMF) on all cards linked to current accounts.

A maximum of one Naira per million for customer induced debit transactions to third parties and transfers or lodgments to the customers’ account in other bank on current accounts only can now be charged. CBN also reduced Advanced Payment Guarantee (APG) pegged at one per cent (1%) of the APG value in the first year and 0.5% for subsequent years on contingent liabilities.

The new guide stipulates that a one-off charge of N1,000 applies to the issuance of cards, irrespective of card type (regular or premium).  N1,000 also applies to the replacement of debit cards requests by customers. CBN said the current NIP charges apply to use of Unstructured Supplementary Service Data (USSD), purchase with cash-back will attract a charge of N100 per N20,000 subject to cumulative N60,000 daily withdrawal. Also, for cards linked to savings account, a maintenance fee has been reduced to N50 per quarter from N50 per month amounting to N200 annually instead of N600. Furthermore, he hinted that by customers (like confirmation letter, letter of non-indebtedness and reference letter) will now attract N500 per request. On Current Account Maintenance Fee (CAMF), the Guide said it is applicable only to current accounts but not to Savings Accounts.

To guard against excess, unapproved or arbitrary charges by banks and other financial institutions, the Guide stipulates a penalty of N2 million per infraction or as may be determined by the CBN from time to time for financial institutions that breach any provision of the guide. The Guide also emphasized that noncompliance by banks with the directives in terms of infractions attracts N2m daily until the directive is complied with or as may be determined by the CBN from time to time. It therefore directed banks to log every complaint received from their customers into the Consumer Complaints Management System (CCMS). Failure to do that attracts N1m per breach.