CBN To Introduce Lower Denominations On ATMs

The Central Bank of Nigeria (CBN) is currently working on the idea of introducing lower denomination of N200 and N100 on the automated teller machines (ATMs), just as the Managing Director of Nigeria Deposit Insurance Corporation (NDIC), Alhaji Umaru Ibrahim, said the Corporation has responded to issues in the global financial literacy, consumer protection, financial inclusion coverage to depositors of non-interest banks. Ibrahim was speaking while officially declaring open the 2014 workshop organised by NDIC for finance correspondents and business editors held in Katsina on Tuesday. Head, Payment System Policy and Oversight Division of Banking and Payments Department of the CBN, Mr Musa Iteopa-Jimoh, said the idea of introducing lower denominations is good for the apex bank than the current situation where higher denominations are available. He said it will serve as deterrent for those who want to withdraw huge amounts, because it will be difficult to carry huge amount from ATM points. “We are working towards having the mix of lower and higher denominations and we believe that this will be acceptable by Nigerians and will further enhance the use of ATMs and promote cashless policy further into the rural areas and also drive the policy of financial inclusion”, he added. He, however, stated that the reason why banks are not putting lower denominations is the cost of processing lower denominations and that the banks find it easy to put higher denominations there because it will mean more money in the machine and the introduction of lower denominations will mean constant loading of the machines. On the reintroduction of ATM charges, Iteopa-Jimoh said this was not a decision of the current CBN governor as the agitation for the reintroduction and the new N65 charge was on the high when the former governor of the apex bank was still in office. He said the CBN in collaboration with the Bankers’ Committee resolved to transfer the payment of N100 fee on “Remote-on-us” ATM cash withdrawal transactions to the issuing banks with effect from September 2012., stressing that the N100 fee was never removed but was transferred to customer’s bank to pay. The action, then, according to him, was to promote and encourage the usage of ATMs by the banking public nationwide and specifically to help the poor, all in the name of financial inclusion. Source:dailyindependent