CBN slashes ATM withdrawal fee to N35

The Central Bank of Nigeria (CBN) has slashed withdrawal fees usually charged after the third withdrawal from Automated Teller Machines (ATM) within the same month from the current charges of N65 to N35.

The new directive was contained in the new Guide to Bank Charges released on Sunday, where the CBN also removed Card Maintenance Fee on all cards linked to current accounts and #also instructed 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.

According to the changes made by the CBN, bank customers will henceforth pay N10 for each electronic transfers below N5,000, and N25 for electronic transfer between N5,000 and N50,000.

The new rule, which takes effect from Wednesday, January 1, states that electronic transfer above N50,000 will be at the cost of N50, Vanguard reports.

The guidelines, however, stated that any Financial Institution that breaches any of the provisions as contained in the new Guide carries a penalty of N2 million per infraction or as may be determined by the CBN from time to time.

The sanctions read in parts: “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.

“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.”

Similarly, the CBN has directed banks and Other Financial Institutions (OFIs) to submit comprehensive plans for consumer protection, education and enlightenment on or before March 31, 2020.