It is hoped that this new directive will not negatively impact on the Nigeria's transition to a cashless economy.
The new tariff regime takes effect from May 1, 2017, and was part of the apex bank’s review of charges by banks and other financial institutions in the country.
The “Guide to Charges by Banks and Other Financial Institutions” provides a basis for the application of charges on various products and services offered by the banks and other financial institutions in Nigeria to their customers.
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According to the Director of Financial Policy and Regulation Department at the CBN, Kevin Amugo, the charges was approved after an extensive consultation with stakeholders.
“The aim of the guide is to enhance flexibility, transparency and competition in the Nigerian banking industry.”
Amugo further explained that, “where a charge is stipulated as “negotiable”, banks and other financial institutions are required to draw the attention of customers to their rights to negotiate and the two parties are required to mutually agree on the applicable interest and/or charge via a verifiable means.”
The new charge is separate from the existing N65 charge after the third withdrawal using other banks ATM machine within a month.