The Central Bank of Nigeria, CBN, has increased the fee for issuance and replacement of Automated Terminal Machine (ATM) debit/ credit cards to N1,500 from N1,000.
The apex bank also scrapped the N50 monthly charges for Naira Debit/ Credit Card maintenance but said customers with Foreign Currency denominated debit/credit cards will continue to pay maintenance fee of $10 per annum.
VDCInsights reports that the upward review is part of a revised guide to bank charges for financial institutions.
In a circular released on Thursday, titled ‘Guide to Charges by Banks and Other Financial Institutions’, the apex bank said the fee, which takes effect from May 1, applies to standard ATM cards issued by banks and other regulated institutions nationwide.
The revised framework replaces the previous guidelines issued in January 2020 and applies to all financial institutions regulated by the CBN, including commercial banks, microfinance banks, payment service banks, and mobile money operators.
The regulator said the new guide was developed following consultations with stakeholders to strengthen transparency and standardisation of charges across the financial system.
According to the apex bank “The Guide aims to enhance flexibility, standardisation, transparency and competition in the Nigerian financial system” .
In what can be described as a measure of relief, the apex bank said the cost of ATM transactions on Merchants PoS will be borne by the Merchant and not the customers.
“Merchant Service Charge (MSC) (charge to be borne by the merchant). There shall be no charge to the cardholder paying the merchant.”
“All card transactions done by cardholders at a merchant location shall be free of charge to the cardholder, i.e. the MSC shall be borne by the merchant. The MSC payable by a merchant (0.5 percent) subject to a cap of N10,000 shall be the same irrespective of the technology or payment methods.”
The revised guidelines contained in a circular to Banks, Other Financial Institutions and the Public signed by the Director Financial Policy and Regulation Department, CBN, Dr. Rita Sike, the apex bank said that the review of the guide to charges by banks and OFIs and non bank Financial Institutions was to fulfill its mandate to promote a safe and sound financial system in Nigeria, accelerate the adoption of innovative financial services, financial inclusion and micro-payments/transaction.”
It further stated “This reviewed Guide provides for an increased range of financial services, encourages development of innovative products, strengthens responsibility for oversight and accountability and promotes financial inclusion through lower tariffs for micropayments/transactions.”
“Furthermore, the Guide reviewed some charges for banking services to encourage increased adoption of electronic channels and accommodates new industry participants since the issuance of the 2020 Guide.”
