CBN Justifies Increased ATM Withdrawal Charges
CBN's Decision on ATM Withdrawal Charges
The Central Bank of Nigeria (CBN) has defended its recent decision to increase charges on cash withdrawals from ATMs of other banks.
Following its Monetary Policy Committee (MPC) meeting on Tuesday, the apex bank announced that the Monetary Policy Rate (MPR) would remain at 27.5%, maintaining key economic parameters.
Governor Cardoso’s Explanation
CBN Governor, Olayemi Cardoso, addressed journalists after the meeting, explaining the rationale behind the ATM withdrawal charge increase, which now stands at N100 per N20,000 withdrawn from another bank’s ATM.
“The banks need to be incentivized to ensure regular access to cash at their ATMs, so that people can withdraw money without issues. While the situation has improved, it still needs to work perfectly and seamlessly.”
Encouraging ATM Availability
The policy aims to encourage banks to expand their ATM network and ensure improved cash availability.
“If you withdraw from your own bank’s ATM, there is no charge. If you frequently use another bank’s ATM, you can apply for a card from that bank to avoid charges. This policy will encourage a greater proliferation of ATMs and make access to money more seamless.”
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