Good news as the Central Bank of Nigeria CBN, finally slashes ATM withdrawal charges from N65 to N35 with new guidelines in the banking sector.
The CBN, on Sunday, December 22; announced a comprehensive review of charges in a new mandate to banks, other financial, and non-bank financial institutions.
This latest mandate is in a bid to ensure financial services is more accessible and affordable; to various stakeholders in the economy.
According to the new guideline, this decree takes effect from January 1, 2020; and may be reviewed from time to time to reflect changes in the business environment.
Isaac Okorafor, Director, Corporate Communications, CBN; made this disclosure during a media chat in Abuja on Sunday.
He revealed that some of the major points in the new guide include the removal of Card Maintenance Fee (CAMF) on all cards linked to current accounts; reduction in the amount payable for cash withdrawals from other banks’ Automated Teller Machines (Remote-on-us) from N65 to N35; after the third withdrawal within one month.
Okorofor further stated that a one-off charge of N1,000 now applies to the issuance of cards; irrespective of card type (regular or premium).
The same one-off charge of N1,000 applies for the replacement of debit cards at the customer’s instance for lost or damaged cards.
In the same vein, upon expiry of existing cards, customers are to pay the same one-off charge of N1,000 irrespective of card type.
Conversely, no charge shall be required for pre-paid card loading/unloading.
He further explained that 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.
Furthermore, he also explained there will be no more charges for reactivation or closure of accounts such as savings, current and domiciliary accounts.
According to the Director, the CBN carried out the review of the Guide; which also prescribes charges permissible for Other Financial Institutions and non-bank financial institutions, in order to align with market developments.
To guard against excess charges, the Guide stipulates a penalty of N2,000,000 per infraction; or as may be determined by the CBN from time to time for financial institutions that breach any provision of the guide.
It also emphasized that failure by any bank to comply with CBN’s directive; in respect of any infraction shall attract a further penalty of N2,000,000 daily; until the directive is complied with or as may be determined by the CBN from time to time.
The CBN, therefore, urged financial services providers and their customers alike to acquaint themselves with the provisions of the Guide and be properly guided accordingly.