CBN reviews ATM transaction fees, removes free monthly withdrawal fee from other banks ATM
The Central Bank of Nigeria has announced new Automated Tella Machine( ATM), removed three free monthly withdrawals allowed in other banks’ ATM.
The Apex bank, revealed in a circular signed by it Ag. Director, Financial Policy and Regulation Department, John Onojah, that imposed a withdrawal fee of between N100 and N600 for every N20,000 worth of interbank ATM withdrawals due to rising cost and the need to improve efficiency of ATM services in the banking industry.
According to a CBN circular, FPR/DIR/GEN/CIR/001/002 with title, ‘Review of Automated Teller Machine Transaction Fee,’ dated February 10, 2025, the new fees will take effect March 1, 2025.
“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:
“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.
The bank explained “ATM Transaction Fees
On-Us (customer withdrawing at the ATM of the customer’s financial institution) in Nigeria No charge. Not-On-Us (withdrawal from another institution’s ATM) in Nigeria On-site ATMs: A charge of NI 00 per N20,000 withdrawal.
“Off-site ATMs: A charge of NIOO plus a surcharge of not more than N500 per N20,000 withdrawal. The surcharge, which is an income of the ATM deployer/acquirer, shall be disclosed at the point of withdrawal to the consumer.
For international ATM Withdrawals (per transaction) whether debit/credit card Cost Recovery — exact charge by international acquirer.”
