In order to encourage banks to enhance cash availability at their ATMs, the Central Bank of Nigeria (CBN) has defended its decision to raise fees for cash withdrawals from other banks’ ATMs.
According to reports, the top bank declared at the conclusion of its Monetary Policy Committee (MPC) meeting on Tuesday that it will maintain important economic indicators by keeping the Monetary Policy Rate (MPR) at 27.5%.
Speaking to reporters following the meeting, CBN Governor Olayemi Cardoso justified the hike in ATM withdrawal fees, which currently stand at N100 for every N20,000 taken out of an ATM operated by another bank.
He clarified that the goal of the policy is to incentivize banks to increase the amount of cash available at ATMs and to grow their network of ATMs.
“In order for individuals to withdraw money without any problems, banks must be encouraged to provide consistent access to cash at their ATMs. Even when things have improved, everything must still function flawlessly, he stated.
Cardoso brushed aside worries that the new charge would discourage consumers from using cash, claiming that it would improve financial efficiency and eliminate dishonest cash withdrawal businesses.
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“There is no fee if you take money out of the ATM at your own bank. You can apply for a card from a different bank if you often use their ATM to prevent fees. This regulation would facilitate easier access to money and promote a wider spread of ATMs,” he continued.
In the end, the CBN anticipates that the action will increase the effectiveness of Nigeria’s banking system by discouraging unlicensed cash handlers from overcharging customers for cash withdrawals.
