The Central Bank of Nigeria (CBN) yesterday
directed deposit money banks in the country to re-introduce a charge of N65 per
transaction on remote-on-us Automated Teller Machines (ATMs) cash withdrawals.
The policy takes effect from September 1, 2014.
The policy takes effect from September 1, 2014.
Remote-on-us are transactions done by a card
holder on another bank’s ATM. The central bank stated this in a circular
addressed to all banks, dated August 13, 2014.
A circular of the document titled: “Circular on
the Introduction of Fees on Remote-on-Us ATM Withdrawal Transactions,” signed
by the Director, Banking and Payment System Department, CBN, Mr. Dipo Fatokun,
was posted on the regulator’s website yesterday.
The CBN in collaboration with the Bankers’
Committee had in December 2012 transferred the payment of N100 remote-on-us ATM
cash withdrawal transactions to issuing banks. This fee used to be shared
between the acquirers, issuers and switches.
However, on the commencement of the arrangement
in December 2012, banks (issuers) decided to waive the issuer fee (N35), which
should have ordinarily been an income to them. Consequently, banks only bore
the cost of N65 each time their customers use another banks’ ATM.
However, the central bank explained that it took
the latest decision as a result of the unintended consequences on banks. This,
it said had resulted in substantial cost burden incurred by banks in defraying
the cost for the service.
According to the CBN, the re-introduction of the
fee was to cover the remuneration of the switches, ATM monitoring and fit-notes
processing by acquiring banks.
“The new charge shall apply as from the fourth
remote-on-us withdrawal (in a month) by a card holder, thereby making the first
three remote-on-us transactions free for card holders, but to be paid for by
the issuing bank.
“September 1, 2014 shall be the effective date
for the implementation of the new fee,” it added. To this end, it urged banks
to conduct adequate sensitisation of their customers on the policy.
“All ATM cash withdrawals on the ATM of issuing
banks shall be at no cost to the cardholder,” it explained.
Meanwhile, in a separate circular on the review
of the operation of the NIBSS Instant Payment (NIP) system and other electronic
payment Options with similar features, the CBN expressed its preparedness to
further strengthen the risk aversion measures put in place for the operations
of the NIP system and other electronic payment options.
“The CBN has directed the categorisations of
online transfer from low security to highly secured transfer with specified
limits. Banks are expected to achieve “Highly Secured Online Funds Transfer”
status within six months, that’s, with a deadline of December 2014.
“Limits of N1 million (instant value) and N10
million (next day value) shall be applied for NIP and other electronic payment
options with similar features, initiated by individuals with effect from 18th
August, 2015,” it stated.Source: Thisday
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