CBN To Introduce Lower Denominations On ATMs

The Central Bank of Nigeria (CBN) is planning on introducing lower denomination of N200 and N100 on automated teller machines (ATMs) nationwide – the Daily Independent reports.

“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”, Head, Payment System Policy and Oversight Division of Banking and Payments Department of the CBN, Mr Musa Iteopa-Jimoh, said. He said the introducing lower denominations is good for the apex bank than the current situation where higher denominations are available as 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. 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.