According to the Central Bank of Nigeria (CBN), the decision to raise fees for cash withdrawals from other banks’ ATMs was made in order to encourage banks to make their ATMs more accessible.
The top bank apparently said at the conclusion of its Monetary Policy Committee (MPC) meeting on Tuesday that it will keep important economic indicators, including the Monetary Policy Rate (MPR) at 27.5%.
Following the meeting, CBN Governor Olayemi Cardoso spoke to reporters and defended the N100 fee for every N20,000 taken out of an ATM at another bank.
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The policy’s objective, he clarified, is to incentivize banks to increase the amount of cash available at ATMs and to grow their network of ATMs.
To guarantee that individuals can withdraw money from their ATMs without any problems, banks must be encouraged to maintain consistent access to cash. It still needs to function flawlessly and smoothly, even though things have improved,” he stated.
Cardoso brushed aside worries that the new charge would discourage consumers from using cash, claiming that it would improve financial efficiency and eliminate cash withdrawal services that abuse people.
“There are no fees if you take out money from the ATM of your own bank. Applying for a card from a different bank can help you avoid fees if you regularly use their ATM. This regulation would promote a wider spread of automated teller machines and facilitate easier access to funds,” he continued.
The CBN anticipates that by discouraging unlicensed cash handlers from overcharging customers for cash withdrawals, the policy will eventually increase the effectiveness of Nigeria’s banking system.
