Banks to Suspend ATM Charges

14 Nov 2012

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James Emejo

All charges accruing from the use of Automated Teller Machines (ATMs) of ‘other banks’ are to be suspended with immediate affect, the Bankers’ Committee announced Tuesday.

It also emerged that the committee is planning a significant donation to victims of the recent floods which affected some states the country.
It said a formal announcement would soon be made to that effect.

Also, yesterday, the Central Bank of Nigeria (CBN) said it was working with the Securities and Exchange Commission (SEC) to establish a joint examination of stockbroking firms, particularly, those owned by holding companies under the new banking reforms in the country.

Addressing journalists after the committee’s regular meeting in Abuja, Acting Managing Director, Keystone Bank, Shehu Mohammad, said the planned suspension was partly aimed at enhancing financial inclusion and encouraging ATM usage in line with CBN’s cashless programme.
However, the stoppage, which is yet to take effect, only affects withdrawals made on “Not on Us” ATMs facilities and does not cover withdrawals made inside the banking halls where the ATMs are up.

Currently, a bank customer who uses an ATM other than that of his or her bank is charged N100 per transaction and the cost is usually borne by the account holder.

But the committee said it had collectively accepted to stop forthwith, charges on such usage of ATMs.

Mohammad, who spoke alongside other banks’ Chief Executives, said: “We have decided that we would work out the modalities to ensure that with immediate effect, we would pass on this cost to the respective banks, we would bear the cost of providing services so that no matter where you are with drawing your money from, you would not be subjected to any charge for using the ATM. It’s a burden we are carrying.”

According to him, the resolve to halt further charges on ATM usage was borne out of the realisation that globally, such charges do not exist. He also said it was part of banks’ corporate social responsibility function to give back to Nigerians.

He said banks were making alots of money and needed to encourage Nigerians to be part of the success story.

Speaking on the proposed joint examination for stockbroking companies, Director, Banking Supervision, CBN, Mrs. Agnes Olatokunbo Martins, said: “Presently, we supervise the banks but in the interest of financial stability, we are going to be working jointly with SEC to supervise stockbroking firms especially those ones owned by holding companies under the new banking reforms. And this is just to ensure that financial stability is maintained.”

Tags: News, Nigeria, Featured, ATM Charges

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