CBN Reveals Why They Increased ATM Withdrawal Charges
The Central Bank of Nigeria (CBN) has justified its decision to increase charges on cash withdrawals from ATMs of other banks, stating that the move aims to incentivize banks to improve access to cash at their ATMs.
The Genius Media Nigeria reports that at the end of its Monetary Policy Committee (MPC) meeting on Tuesday, the apex bank also announced that it would retain the Monetary Policy Rate (MPR) at 27.5%, maintaining key economic parameters.
CBN Governor, Olayemi Cardoso, while addressing journalists after the meeting, stated defended the increase in ATM withdrawal charges, which now stands at N100 per N20,000 withdrawn from another bank’s ATM.
He explained that the policy aims to encourage banks to improve cash availability at ATMs and expand their ATM network.
“The banks need to be incentivized to ensure regular access to cash at their ATMs, so that people can withdraw money without issues. While the situation has improved, it still needs to work perfectly and seamlessly,” he said.
Cardoso dismissed concerns that the new fee would deter customers from accessing cash, instead arguing that it would enhance financial efficiency and shut down exploitative cash withdrawal services.
“If you withdraw from your own bank’s ATM, there is no charge. If you frequently use another bank’s ATM, you can apply for a card from that bank to avoid charges. This policy will encourage a greater proliferation of ATMs and make access to money more seamless,” he added.
The CBN expects the measure to discourage informal cash handlers from overcharging people for cash withdrawals, ultimately improving the efficiency of Nigeria’s banking system.
