Mozambican banks increase ATM withdrawal fee

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Mozambican banks increase ATM withdrawal fee

1:22 CAT | 12 Mar 2018

The Mozambican Association of Banks (AMB) has justified the increased commission on the use of ATMs paid by customers since January on the grounds of higher operating costs, metical devaluation and rising inflation.

Users of Interbanco de Moçambique (Simo) ATM machines have seen an increase in the fee charged per withdrawal since January, when it rose from seven to nine meticais (nine to 11 Euro cents).

AMB chairman Teotónio Comiche told Lusa on Friday that the commission has been in place since August 2012, but it has had to be increased at the beginning of this year due to “the growth of inflation”, because of the “strong metical devaluation, mainly in 2016” and also due to the increase of the operational costs in the commercial network of the banks, associated with the expansion of the same network.

Regarding users’ complaints that financial institutions are violating the exemption from commission of the first two operations each month, Comiche said that the banks agreed with the Bank of Mozambique, and that this free offer would be observed from April.

The AMB chairman pointed out that the application of the commission on withdrawals had financed the launch and expansion of the current network of about 1,700 ATMs in Mozambique.

Comiche also stressed that the costs inherent in the network were related to the size of the country and its significant logistical difficulties of access and energy, cost, and the difficulty of transporting money.

“Only the existence of these rates allowed the expansion and maintenance of the machines in operation,” he said.

AMB fears that a new financial services commissions and charges regime, effective from April 1, 2018, will reduce revenues associated with ATMs and, therefore, investments in strengthening and maintaining the network, hampering the goal of financial inclusion.

“This concern is even more relevant when we think that the users of the electronic currency [through mobile phone accounts] are also served by this national ATM network,” Comiche notes.

Source: Lusa