As the N65
charge on the use of other banks’ Automated Teller Machines, ATMs commenced last week, as announced by the
Central Bank of Nigeria, CBN, customers have been cautious on its usage as most
customers used their banks’ATMs.
A visit to some of the banks last
week showed that about 95 per cent of the people seen withdrawing money from
the ATMs was customers of their respective banks.
When asked why they prefered to
remain in queue instead of utilizing other banks’ ATM's where there were fewer
queues, the customers said that they were avoiding the N65 extra charges as
announced by the CBN.
The CBN had explained that the
introduction of fees on Remote –On-Us ATMs was a result of the abuse in the use
of ATMs , which provided additional costs to the banks.
Therefore, with the introduction of
N65 charge on Remote-On-Us ATMs, customers would be very careful in using the
ATMs of other banks other than theirs, since it attracts a little fee on the
fourth time usage in a month.
However, some people have argued
that the introduction of N65 fees on Remote – On –Us will frustrate cashless
policy of the apex bank.
According to them “Some customers
may result to dealing with cash instead of using ATMs to make payments or
settlement.” But, which ever way one looks at it, there is always a cost,
either implicitly or directly.
Meanwhile, the CBN had noted that
its intention was not to add any extra burden on the customers, rather to
ensure that the abuse is eradicated and excessive cost to the banks,
eliminated.
It will be recalled that the apex
bank noted some public comments on its recent circular in respect of
fees/charges on the extended use of other banks’ ATMs.
These reactions have been mixed with
most commentators showing great understanding and other stakeholders expressing
clear lack of understanding of the rationale for this decision of the Bankers’
Committee.
According to CBN “Our intention in
this public communication is to further explain the rationale and the critical
need for this measure which has been taken in order to ensure that ATMs across
the country continue to function to the satisfaction of all bank customers.
Cash withdrawal at the ATMs of a
customer’s bank is free; “Remote-on-Us” transaction is when a card holder goes
to the ATM machine of another bank other than his or her own bank to make a
withdrawal.”
In December 2012, the CBN, in
collaboration with the Bankers’ Committee, transferred the payment of N100 fee
on “Remote-on-us” ATM cash withdrawal transactions to issuing banks.
According to CBN, “The N100 was
never removed. It was only transferred to customer’s bank to pay, and this was
intended to encourage/promote the use of ATMs nationwide.
Having sufficiently raised
customers’ awareness, the first three “Remote-on-Us” transactions in a month
are free for the card holder but paid for by the issuing bank.
The N65 charge only applies when a
customer withdraws cash from another bank’s ATM other than that of his/her
bank. The N65 starts to apply from the 4th transaction at another banks’ ATM in
a month.
“The charge is not intended to
discourage financial inclusion.The CBN will not endorse any anti-customer
policy .Charging of fees on interbank networks is a widely acceptable practice
globally
On the reasons for ATM charges, the
CBN said “ To ensure customers get better services;
To increase healthy competition among
the banks.The increased transaction volumes at other banks’ ATM have increased
astronomically due to the free cash withdrawal at other banks’ ATM. The wear
and tear as well as the frequency of servicing the ATMs have increased
significantly. Indeed, some customers were beginning to abuse the use of ATMs
through countless daily withdrawals.”
The CBN stated that this development
has led to increase in cash transactions, which negate the Bank’s Cash-less
policy.
According to CBN “Maintaining ATM is
expensive and it requires economic incentive for owners to deploy and maintain
these machines.If a part of this cost goes unabated, the banks may be forced to
reject transactions coming from their customers at another bank ATMs, thereby
frustrating the interoperability of payment systems.”
As
the N65 charge on the use of other banks’ Automated Teller Machines,
ATMs commenced last week, as announced by the Central Bank of Nigeria,
CBN, customers have been cautious on its usage as most customers used
their banks’ATMs. - See more at:
http://www.vanguardngr.com/2014/09/atm-bank-customers-cautious-n65-charge/#sthash.ZsNiWxs9.dpuf
As
the N65 charge on the use of other banks’ Automated Teller Machines,
ATMs commenced last week, as announced by the Central Bank of Nigeria,
CBN, customers have been cautious on its usage as most customers used
their banks’ATMs. - See more at:
http://www.vanguardngr.com/2014/09/atm-bank-customers-cautious-n65-charge/#sthash.ZsNiWxs9.dpuf
As
the N65 charge on the use of other banks’ Automated Teller Machines,
ATMs commenced last week, as announced by the Central Bank of Nigeria,
CBN, customers have been cautious on its usage as most customers used
their banks’ATMs. - See more at:
http://www.vanguardngr.com/2014/09/atm-bank-customers-cautious-n65-charge/#sthash.ZsNiWxs9.dpuf
As
the N65 charge on the use of other banks’ Automated Teller Machines,
ATMs commenced last week, as announced by the Central Bank of Nigeria,
CBN, customers have been cautious on its usage as most customers used
their banks’ATMs. - See more at:
http://www.vanguardngr.com/2014/09/atm-bank-customers-cautious-n65-charge/#sthash.ZsNiWxs9.dpuf
No comments:
Post a Comment