Banks - NEWS AGENCY OF NIGERIA

Lydia Beshel
Feb, Tue, 2025

Banking

CBN scraps free ATM withdrawals, introduces N100 fee

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ATM

By Grace Alegba

The Central Bank of Nigeria (CBN) says it has eliminated the three free monthly withdrawals transaction fees for cudtomers using other banks’ Automated Teller Machine (ATMs) from March 1.

The apex bank disclosed this on Tuesday in a circular posted on its website, addressed to all banks and other financial institutions.

The circular, signed by John Onojah, Acting Director, Financial Policy and Regulation Department, said the measure was in response to rising costs.

“In response to rising costs and the need to improve efficiency of Automated Teller Machine (ATM) services in the banking industry, the Central Bank of Nigeria (CBN) has reviewed the ATM transaction fees prescribed in Section 10.7 of the extant CBN Guide to Charges by Banks, Other Financial and Non-Bank Financial Institutions, 2020 (the Guide).

“This review is expected to accelerate the deployment of ATMs and ensure that appropriate charges are applied by financial institutions to consumers of the service.

“Accordingly, banks and other financial institutions are advised to apply the following fees with effect from March 1, 2025,” he said.

The circular said that withdrawals from a customer’s financial institution attracted no charge, but those from another institution’s ATM in Nigeria would attract charges of N100 per N20,000 withdrawal.

It listed charges of N100 plus a surcharge of not more than N500 per N20,000 withdrawal on other categories of fees for other financial institutions.

It also noted surcharge categories to be disclosed at the point of withdrawal to the consumer.

“Furthermore, the three free monthly withdrawals allowed for Remote-On-Us (other bank’s customers/Not-On-Us consumers) in Nigeria under Section 10.6.2 of the Guide shall no longer apply,” it said. (NAN)

Edited by Olawunmi Ashafa

Abdulrahman Kadiri
Jan, Wed, 2025

Economy/Business

CBN sanctions 9 banks for failing to dispense cash via ATMs

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By Kadiri Abdulrahman

The Central Bank of Nigeria (CBN) says it has sanctioned some Deposit Money Banks (DMBs) for failing to make Naira notes available through automated teller machines (ATMs), during the yuletide season.

According to a statement by Hakama Sidi-Ali, CBN’s Director, Corporate Communications Department, this is a clear message of zero tolerance for cash flow disruptions.

The affected banks are Fidelity Bank Plc, First Bank Plc, Keystone Bank Plc,
Union Bank Plc, Globus Bank Plc, Providus Bank Plc, Zenith Bank Plc, United Bank for Africa Plc, and Sterling Bank Plc.

Sidi-Ali said that each of the banks was fined N150 million for non-compliance, in line with the CBN’s cash distribution guidelines, following spot checks on their branches.

She said that the enforcement
action followed repeated warnings from the CBN to financial institutions to guarantee seamless cash availability, particularly during periods of high demand.

“Communication with the banks revealed that the fines would be debited directly from their accounts with the apex bank.

“Ensuring seamless cash flow is paramount to maintaining public trust and economic stability.

“The CBN will not hesitate to impose further sanctions on any institution found violating its cash circulation guidelines,” she said.

She said the CBN’s investigations and monitoring would continue to scrutinise cash hoarding and rationing, both at bank branches and by Point-of-Sale (POS) operators.

She added that the CBN was working with security agencies to crack down on illegal cash sales and operational violations, including enforcing POS operators’ daily cumulative withdrawal limit of N1.2 million.

She urged all financial institutions to comply with its guidelines, warning that further violations would attract swift and decisive sanctions.

The News Agency of Nigeria (NAN) reports that the CBN Governor, Yemi Cardoso, had earlier warned banks to strictly adhere to cash distribution policies or face severe penalties.

Cardoso gave the warning in his address at the Annual Bankers’ Dinner of the Chartered Institute of Bankers of Nigeria (CIBN) in Nov., 2024.

He underscored the apex bank’s commitment to maintaining a robust cash buffer to meet the need of Nigerians.

“Our focus remains on fostering trust, ensuring stability, and guaranteeing seamless cash circulation across the financial system,” Cardoso had said.(NAN)(www.nannews.ng)

Edited by Gregg Mmaduakolam/Muhyideen Jimoh