Banks begin implementation of new charges on ATMs, electronic transactions

There are indications that Deposit Money Banks (DMBs) in Nigeria have started implementation of the new directive of the Central Bank of Nigeria (CBN’s) over bank charges for customers on Automated Teller Machine (ATM) and other electronic transactions.

In December 2019, the CBN mandated banks and non-bank financial institutions to reduce charges applicable to bank accounts, electronic transfers, and Automated Teller Machines (ATMs).

CBN says the essence is to reduce the cost of banking services to customers and allow them to embrace electronic channels.

Checks by the Nigerian Tribune revealed that, at first business day in 2020, most commercial banks have fully complied with charges while some sent messages to customers informing them of the changes.

A customer of Guaranty Trust Bank, Mr Kehinde Joseph, who made an electronic transfer on January 3, 2020, said the Commission and Value Added Tax which used to be N52.50 has been reduced to N26.25.

Also, Fidelity Bank Plc, for instance, issued a notice to its customers about the CBN’s directive and its compliance with the new charge regime.

“In line with the Central Bank of Nigeria’s (CBN) directive to implement provisions in the Revised Guide to Bank Charges (RGBC), we wish to inform you about the reduction in charges for the following transactions effective January 01, 2020,” the messages read.

The CBN had said the revised Bank Charges are put in place to “build an inclusive banking system that adequately caters to the needs of the banking public while preserving the financial sustainability of banks, other financial and non-bank financial institutions.”

It will also reduce the cost of banking services to customers and allow them to embrace electronic channels.