Banks should make money obtainable in ATMs – CBN

The Central Bank of Nigeria has urged banks to make sure that their prospects have entry to money at their Automated Teller Machines as the rise in ATM transaction charges takes impact on March 1.

This was disclosed by the Appearing Director, Monetary Coverage and Regulation Division, John Onoja, throughout an interview on Come up TV on Tuesday, the place he talked concerning the apex financial institution’s newest directive on ATM transactions.

In a CBN round dated February 10, 2025, the apex financial institution launched the revised ATM transaction charges. Beneath the revised charge construction, withdrawals from one’s financial institution ATMs will stay freed from cost. Nevertheless, prospects utilizing ATMs of different banks will probably be subjected to a cost of N100 per withdrawal of N20,000 or much less at on-site ATMs, that are situated inside or instantly affiliated with a financial institution department.

Off-site ATMs, that are positioned exterior financial institution premises reminiscent of buying malls, gas stations, and different public areas, will appeal to an extra surcharge of as much as N500 per transaction. For worldwide ATM withdrawals, prices will probably be based mostly on price restoration, which means prospects will bear the precise charge utilized by the worldwide acquirer. CBN later revealed that Nigerians withdrawing lower than N20,000 from one other financial institution’s Automated Teller Machine will nonetheless be charged a charge of N100 per transaction.

Talking on the transfer, Onoja mentioned it was partly because of the rising operational price, saying, “It’s additionally one facet on the a part of the monetary establishment, in order that they’ll be capable of additionally sustain with the price of doing enterprise after which provide worth providers to the shoppers, and in addition on the facet of the shopper, it’s to make certain that they’re going to have very high quality service and value-added providers from their bankers.”

Dismissing speculations that it’s an try and mop up extra money in circulation, Onoja mentioned, “There are skilled methods of coping with extra liquidity on this system in Nigeria. The CBN, because the apex financial coverage physique in Nigeria, has completely different instruments to take care of that. So, whether it is to cut back money in circulation because of inflation and all of that. I’m certain the Central Financial institution has higher instruments to make use of and isn’t going by the ATM points. So, it’s not in any method to cut back cash in circulation. Fairly, it’s to even make the cash obtainable to those that want it. Everyone knows that the opposite channels which are obtainable to prospects and those that do enterprise to transact, the digital channels, are there. It’s essential to make sure those that are particularly within the distant areas, those that come to the ATMs and don’t discover money, are assured that banks present money on the ATMs so that you simply, as a buyer, can go to the machine and get money. It’s under no circumstances an try to cut back money.

“Cashless doesn’t imply no money; identical to you mentioned, it’s relying much less on money and utilizing different methods, different technique of transaction enterprise. We all know that you should use your playing cards on service provider PoS to make purchases. You should utilize that to make funds in nearly all transactions and wherever you suppose you want fee. However that doesn’t cancel the truth that some individuals might have the uncooked money of their pocket, and so the ATM is offered for you to have the ability to have that entry to money. I’ve seen on two or three events previously few days that the Central Bank of Nigeria is anxious with entry to money, and due to that, they’re working assiduously. They need to make sure that Nigerians aren’t denied entry to reputable money the place it’s wanted. Due to that, there’s a committee engaged on entry to money coverage and guaranteeing that when Nigerians want money, particularly those that will want money on the distant stage, or those that want money in locations the place, due to know-how, they don’t have entry to utilizing different issues and different channels of fee, they are going to have money of their pocket.”

Onoja added that the banks have to make sure that their prospects have entry to money by numerous shops.

“Central Bank of Nigeria just isn’t deploying ATMs as a result of we should not have retail prospects like people, because it have been, so the ATMs are shops to make a price obtainable to their prospects to have the ability to have entry to money. The over-the-counter place is there, however not everyone might want to go to the banking corridor to have the ability to get money, particularly when the quantity may be very small. And so, it’s the duty of the business banks to deploy shops the place their prospects will be capable of entry money after they want it, and if the machines aren’t obtainable to their prospects, that’s the place their prospects might want to use the machines offered by different banks, and that’s the place the difficulty of paying 100 naira, because the case could also be, will are available in. So, the banks are challenged of their enterprise setting to make sure that their prospects don’t need to pay additional for utilizing opponents’ ATMs, during which case it means quite a bit to their marketing strategy. Industrial banks have the duty to offer shops by the ATM.”

Onojah urged monetary establishments to enhance money availability whereas advancing digital banking to ease transactions nationwide.