The Nation Newspaper

Tag: ATMs

  • Reps to probe banks for fake note-dispensing ATMs

    Reps to probe banks for fake note-dispensing ATMs

    The House of Representatives has resolved to look into reported cases of fake naira notes being dispensed by Automated Teller Machines (ATMs).

    The lawmakers noted that the negative trend has the potential of affecting the cash-less economy policy and the economic growth of the country at large.

    Consequently, House Committee on Banking & Currency has been mandated to investigate the matter and report back to the House in three weeks.

     Mover of the motion, Tajudeen Yusuf (PDP, Kogi) noted that since the commencement of the ATM, it has impacted positively on banking operations (service deliver) and safety of customers fund.

    He, however, found it worrisome that in spite of that, there has been growing incidence of fake naira notes dispensed by the machines.

    He said: “It is disturbing that many law abiding citizens have been victims of this unfortunate, unprofessional and immoral practice, which has led to the loss of legitimate funds by Nigerians.

    “More worrisome is that in most cases, victims of the fake naira notes dispensed by ATMs, suffer neglect, anxiety and confusion, as no concrete and proactive measures are taken by commercial banks to correct these anomalies; immediately.

    “It is of great concern that the dispense of fake naira notes by the ATMs may grossly affect the operation, viability and success-rate of the recently introduced Cashless Policy by the Central Bank of Nigeria (CBN).

    “Not that alone,  this negative trend has the potential of eroding public confidence in our banks, impede smooth banking transactions, throw-up ethical questions, slow ­down investment and affect economic growth.”

    Meanwhile, the House of Representative  Committee on Information and National Orientation has blamed the Federal Ministry of Finance for poor budgetary  allocation to Ministries, Departments and Agencies, (MDAs).

    House Committee Chairman, Information and National Orientation, Honourable  Umar Buba Jubrin while on an oversight function to the National Orientation Agency, (NOA) in Abuja yesterday, said the failure of the Finance Minister, Ngozi Okonjo Iweala to yield to the request of the legislatures caused the poor budgetary allocation to MDAs.

     Jubrin described the situation where NOA staff are not being paid their salaries adequately according to appropriation as unfortunate and unacceptable, noting that this was capable of demotivating the staff.

    He appealed to the Ministry of Finance to release appropriated funds to all Ministries, Departments and Agencies without further delay to enable the implementation of the 2013 budget as the third quarter of the year is already on course.

  • Proliferation of ATMs favours higher notes, says CBN

    Proliferation of ATMs favours higher notes, says CBN

    The proliferation of Automated Teller Machines (ATMs) is making banks to stock higher naira denomination notes over smaller notes, the Governor of the Central Bank of Nigeria (CBN), has said.

    Speaking at the opening ceremony of the West African Institute for Financial and Economic Management, (WAIFEM)/Currency Research regional workshop on banknotes and currency management in Abuja yesterday, the CBN governor Mallam Sanusi Lamido Sanusi said ATMs have had considerable impact on note design and sharpened the focus for both commercial and central banks.

    “The growing network of ATMs has affected the compositional shift from lower denomination notes to higher denomination notes,” he said. The governor explained that in most cases, “the banks do not find it commercially viable to stock their machines with lower denomination notes because they run out sooner and increase both the capital cost and operating costs. Hence, the demand for higher denomination notes.”

    Sanusi lamented that currency management has become “not only cumbersome with the attendant complex logistical arrangements but also very expensive.”

  • Banks’ imagemakers urge patience on ATM fee removal

    Banks are working out ways for scrapping the N100 charged customers for using other banks’Automated Teller Machine, (ATMs), according to the Association of Corporate Affairs Managers of Banks (ACAMB).

    ACAMB’s President, Mr Tunde Sofowora, said the banks would strive to remove impediments towards the scrapping of the charge.

    Banks’chief executives agreed three weeks ago to scrap the charge to promote e-banking.

    Sofowora said: “The rough edges will be smoothened in a few days and customers will enjoy this,” new freedom of using ATM charge.”

    He urged customers to be patient to allow banks to work out modalities with third party service providers on implementing the scrapping.

    He said the resolution of the Bankers’ Committee is one of the ways that banks would leverage on to give values to their customers.

    “It is also one of the ways of promoting neighbourhood banking to encourage the success of the industry,” he added.

    He said banks have acquired sufficient capacity in infrastructure and manpower to run a seamless cash-less economy.

    According to him, customers among other related parties, must avail themselves of the friendly environment banks have provided to promote their businesses and the economy in particular.

    The ACAMB’s chief said banks are making it easier as much as possible for customers for customers to transact their business from any location in the country, adding that the issue of providing transaction convenience is key to the growth of the economy.

    Sofowora said banks have invested billions of naira to acquire thousands of Point of Sales (PoS), among other channels, to service customers better.

    “To this end, the association urged merchants, traders, supermarket operators, and filling station owners to go to their banks and collect PoS terminals to facilitate electronic payments nationwide.

    “Banks are promoting the growth of electronic payment system, as well as increasing the availability, reliability and security of electronic channels. The use of e-banking will discourage heavy cash usage that attracts deadly robberies and cash related crimes such as kidnapping and money laundering,” he added.

  • CBN, NDIC to monitor banks’ compliance with ATMs’ directive

    CBN, NDIC to monitor banks’ compliance with ATMs’ directive

    The Central Bank of Nigeria(CBN) is to monitor compliance with its directive stopping the N100 depositors pay for using other banks’Automated Teller Machines (ATMs).

    CBN will deploy examiners in banks to ensure compliance, Managing Director, Nigeria Deposit Insurance Corporation (NDIC) Umaru Ibrahim said.

    He was speaking at a workshop for finance reporters in Dutse, the Jigawa State capital.

    Last Tuesday, CBN stopped the N100 charge for the use of ATMs other than those of a depositor’s banks.

    The decision followed a meeting at the lenders’ committee comprising executives banks directors and top CBN officials.

    Depositors hitherto paid N100 per withdrawal for rising other banks’ ATMs.

    The NDIC boss said the decision to stop the charge would increase the patronage of ATMs and deepen the financial inclusion strategy.

    He listed the other projects meant to promote financial inclusion to include the cash-less policy designed to bring low-cost, secure and convenient financial services to urban, semi-urban and rural areas in the country.

    Ibrahim called for the promotion of all-women microfinance banks, adding that evidence from other countries indicate that such institutions have the potential to promote easy access to credit among rural women, especially at the group levels.

    He said the platform could also be used to mobilise more funds from the group. He said out of the total number of provisional and final microfinance bank licences issued by the CBN, the north, including Federal Capital Territory had only 24.75 per cent, and therefore called on the state governments in the region to establish more grassroots banks.

    According to him, financial inclusion, alternatively characterised as ‘access to finance’ has been defined as ‘universal access at reasonable cost, to a wide range of financial services to everyone needing them, provided by a diversity of sound and sustainable institutions.’

    He said the CBN and NDIC have and uphill task in improving financial inclusion given the relatively low level of penetration of financial services in the country.

    The NDIC boss said the rising trend in bank customers’ complaints is a source of worry to the regulators.

    He said such complaints arising mainly because of poor customer service, high bank tariffs, frauds and forgeries as well as bank distress could threaten confidence in the banking system.

    He said banks are aware of whom their customers are but many of them do not appreciate the need to determine their expectations and how to manage them.

    “The inability to manage customers coupled with the serious corporate governance issues could explain the high frequency of complaints among bank customers in Nigeria. To determine the causes of customer complaints and design appropriate strategies for preventing and controlling it, the need to determine customer expectations and how to effectively manage them cannot be overemphasised,” he said.