News

CBN bans monthly ATM 'card maintenance' fees

April 2, 2013

Acting in response to public outrage, the Central Bank of Nigeria has decreed that banks will not be permitted to collect an N100 (63 cents) monthly ATM card maintenance fee. Many banks had imposed this fee recently in order to recoup losses brought about by another decree that prevented them from imposing fees of any type on ATM transactions.

Punch Nigeria reported that the CBN had issued a notice on its website that banks would be entitled to no more than N100 annually for ATM account maintenance.

Further clarifying its stance on fees, the CBN posted a list of acceptable carges for other types of transactions:

• mandatory cost of SMS alert pegged at N4 (.03 cents);
• charge of N70 (44 cents) for electronic transfer of less than N500,000 ($3,153);
• charge of N100 (63 cents) for transfer between N500,000 and N1 million ($6,306.36); 
• charge of N500 ($3.15) for transfer of N1 million or more;
• charge of no more than N1,000 ($6.31) for debit card issuance;
• charge of N240 for international withdrawals on debit cards (banks currently charge N1,000 ($1.51);
• interest on savings deposit accounts at a minimum of 30 per cent of the monetary policy rate per annum.

The goal of the CBN is to keep charges low in support of the Nigerian government's cashless policy. The government wants to make it more desirable for citizens to keep their money in bank accounts, accessing it only as needed at an ATM. The hope is that this will keep Nigerians safer from robbery while boosting the country's growing economy.

Read more about regulatory issues.