Why CBN Re-introduced ATM Fee

The number of times bank customers carry out ATM transactions, using other banks machines has has increased from 33.4 million in January 2013 to 66.8 million as at December 2013. 
Chairman of CEBIH, Tunde Kuponiyi said the astronomical increase which has put unbearable cost on banks made necessary for the apex bank to re-introduce a fee to ameliorate the over-head cost on banks.
Also, the amount of cash bank customers withdraw from other banks’ Automated Teller Machines on monthly basis rose from N91 billion in January 2013 to N168 billion in December 2013, data compiled by the Committee of E-Banking Heads have shown.
The figure represented a 172 per cent increase over a period of one year.
The Chairman, CEBIH, Tunde Kuponiyi, who rolled out the statistics at a press briefing in Lagos on Tuesday, said the number of times bank customers carried out ‘Remote-on-us’ ATM transactions (customers using other banks’ ATMs) in a month rose from 33.4 million in January 2013 to 66.8 million in December 2013.
The CEBIH chairman, who is also the Group Head of E-Business, said the rising number of remote-on-us transactions had put substantial cost burden on Deposit Money Banks.
The development, he said, had made the Central Bank of Nigeria, in collaboration with the Bankers’ Committee, to re-introduce ATM fee to bank customers.
Kuponiyi argued that rather than promote the CBN’s cashless Nigeria drive, the rising rate of ATM use would promote cash handling instead of other forms of electronic payments that could be carried out on the ATMs.

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