*CBN Building in Central Area, Abuja
After years of lamentation by Nigerians who are daily exploited by Nigerian banks, the Central Bank of Nigeria (CBN) has finally reduced the withdrawal charge attached to transactions on banks’ Automated Teller Machines (ATM). The reduction is from N65 to N35. This is contained in a document entitled, ‘Guide to Bank Charges’ released by the apex bank, on Sunday.
Because of these arbitrary charges, a good number of banks in Nigeria set their ATM to dispense maximum of N5000 and N10000 at once to enable them maximise their exploitation of the citizenry. The document from the CBN also contains information on downward reviewed electronic transfer, ATM fees as well as card maintenance fees.
According to the guideline, the N65 fee will be imposed on customers after the third withdrawal within the same month. It also directed banks to charge customers N10 for electronic transfers below N5,000, and N25 for electronic transfers between N5,000 and N50,000. Only electronic transfers above N50,000 will attract N50 charge.
The CBN removed card maintenance fee on all cards linked to current accounts and also asked banks to charge a maximum of N1 per mille for customer-induced debit transactions to third parties and transfers or lodgments to the customers’ account in other banks on current accounts only. The apex bank said the failure of banks to comply with the directive will lead to a penalty of N2,000,000 or as determined by the CBN.
“Financial Institutions are to note that any breach of the provisions of this Guide carries a penalty of N2,000,000 per infraction or as may be determined by the CBN from time to time,” it said. “Failure 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.”