The Central Bank of Nigeria (CBN) has reduced the withdrawal fee charged for use of other banks’ Automated Teller Machines (ATMs) from N65 to N35.
The new N35 charge, according to the apex bank should be imposed after the third withdrawal within one month
This directive is contained in the new Guide to Bank Charges released by the CBN on Sunday.
The CBN also removed Card Maintenance Fee on all cards linked to current accounts and put Advance Payment Guarantee to a maximum of one percent of the Advance Payment Guarantee (APG) value in the first year and 0.5 per cent for subsequent years on contingent liabilities.
The apex bank also asked banks to charge a maximum of N1 per million for customer induced debit transactions to third parties and transfers or lodgments to the customers’ account in other bank on current accounts only.
The apex bank warned banks to ensure full compliance to the new guidelines adding that any bank that violate the provisions of the guidelines would be sanctioned.
“Financial Institutions are to note that any breach of the provisions of this Guide carries a penalty of N2,000,000 per infraction or as may be determined by the CBN from time to time,” the guidelines read in part.
” Failure to comply with CBN’s directive in respect of any infraction shall attract a further penalty of N2,000,000 daily until the directive is complied with or as may be determined by the CBN from time to time.”
It will be recalled that prior to this directive, banks were charging N65 after every third transaction originating from other banks’ATM machines.
Current account holders were also charged a monthly fee for card maintenance.