CBN explains reason behind hike in ATM withdrawal fees

The Central Bank of Nigeria (CBN) has justified its decision to increase charges on cash withdrawals from ATMs of other banks.

Naijahitz reports that at the end of its Monetary Policy Committee (MPC) meeting on Tuesday, the apex bank also announced that it would retain the Monetary Policy Rate (MPR) at 27.5%, maintaining key economic parameters.

CBN Governor, Olayemi Cardoso, while addressing journalists after the meeting, stated defended the increase in ATM withdrawal charges, which now stands at N100 per N20,000 withdrawn from another bank’s ATM.

He explained that the policy aims to encourage banks to improve cash availability at ATMs and expand their ATM network.

He said:

“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.”

“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.”