CBN Slashes ATM Charges, Inter-bank Transfer Fees

The Central Bank of Nigeria (CBN) has reduced ATM withdrawal charges and inter-bank transfer fees, throwing smiles on Nigerian faces.

CBN announced the reduction in charges while issuing a downward review of charges for electronic banking transactions.

It made the downward review in its revised guidelines to charges by Banks, Other Financial Institutions (OFIs) and Non-Bank Financial Institutions.

The charges:

Recall that before the reduction, banks would charge you N65 (sixty five Naira) on your ATMs withdrawals after the third time in a month.

Also, commercial banks usually charge N300 (three hundred Naira) when you engage in inter-bank transfers.

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However, the CBN’s new downward review has reduced those charges.

According to the apex bank, in its amended guidelines to charges by banks, other financial institutions (OFIs), and non-bank financial institutions, reviewed the charges for electronic banking transactions.

The new charges:

CBN has reduced the ATM charges from N65 to N35 after the third withdrawal within the same month.

Also, the apex bank cut inter-bank transfers from N300 to maximum of N50 per transaction.

the regulator made the reduction in a circular which the Director, Financial Policy and Regulation Department, by Chibuzor Efobi, signed.

The CBN titled the circular, “RE: GUIDE TO CHARGES BY BANKS, OTHER FINANCIAL AND NON-BANK FINANCIAL INSTITUTIONS”.

According to CBN, the review is in response to “further evolution in the financial industry in the last few years.’’

Also, the bank said thus: “The guide was first released in 2004 and revised in 2013 and 2017 due to market developments such as innovations in products and channels, as well as new industry participants,”

Other reviews in the guideline include:

1. Review of other bank charges to align with market developments.

2. The revised Guide to Charges by Banks, Other Financial and Non-Bank Financial.

Also, others include 3. Downward review of charges for electronic banking transactions;

4. Inclusion of new sections on Accountability/Responsibility and a Sanction Regime to directly address instances of excess, unapproved and/or arbitrary charges.

5. Institutions takes effect on January 1, 2020.