Did you pass your driving test? Oh, you did not attend a driving school. I can tell from the grin peeping under your face. Many local drivers did not attend driving school. That is the reason they run like bats from hell. Well, in the UK, it has been discovered that learners who had their driving tests at an exact time are more likely to pass. Driver and Vehicle Standards Agency (DVSA) said 63 per cent of students who tested between 5 pm and 6 pm on a Monday passed.
Learners who test on a certain day are more likely to pass. And Monday is a good day for testing. The record shows a 53 per cent pass rate. But you must avoid certain times and days. After 7 pm is bad. Only 30 per cent of learners passed. Friday is bad. About 49 per cent of learners passed on this day. Of the UK’s 380 driving test centres, the worst pass rate was at Erith, South East London. It has a 32 per cent success rate.
On The One Hand
You, too, may not have a success pass rate. That is if you withdraw cash from another bank’s ATM. Three times. In a month. You will pay N35 after the third withdrawal. This is not the reason we have fewer ATMs. In “Why banks are removing the ATMs,” I asked why we have a cut in the number of active ATMs. I offered two reasons. The high maintenance cost of the machine. The expensive procurement of the machines. Besides, the machines are expensive to service. That is why the banks are not deploying many machines. I submitted.
However, one of the highly influential CEOs in the industry disagreed. He engaged me. He didn’t quite agree with my position. From his height, he observed that we have fewer ATMs because of regulatory price control. This has led to the false belief that if we rob Peter, we can pay Paul. This erroneous action has activated other mistakes.
Some of these have pushed the Central Bank of Nigeria (CBN) to reduce ATM fees. The fees came down from the almighty N100 to N65. Then from a princely N65 to the lowly N35. This was done to promote financial inclusion. The CBN claimed then. The apex bank also capped the number of withdrawals before the fees apply.
To the discerning eyes of my CEO friend, the decision was bad. In case you do not know, the banks will not offer you a cup of water without a charge. If you don’t pay at the dispense point you will pay somehow. Anyway, with that arrangement, the banks do not view the ATM deployment as a profit centre. If it is not a profit centre, why should the banks deploy more ATMs? Therefore, that explains why we have fewer ATMs.
A deeper reason is that the CBN has successfully created a monster, the agents. The agents have exploited the ATM conundrum. The CBN cannot regulate the agents’ pricing. The agents are the new, silent mafia. For the agents, it is a business opportunity. With the connivance of the in-house gurus, the mafia has ensured that the ATMs do not function. Because of this, bank customers move to the agents. Therefore, the masses invariably pay more than the initial N100 for cash withdrawal. That explains why you may forever pay more at the ATMs.
On The Other Hand
The Reserve Bank of India (RBI) is considering several changes. These changes will affect the financial and non-financial transactions as they relate to the ATMs. The banks in India have increased the charges. This is contained in a circular signed by P Vasudevan, the Chief General Manager.
A customer will pay 21 rupees (N114.34) if the customer exceeds the monthly limits of the ATM withdrawal. Initially, the ATM charges were 20 rupees. RBI has also imposed the interchange fee charged by the banks for ATM transactions. This has been increased from 15 to 17 rupees for each financial transaction. The interchange fee for non-financial transactions is increased from five to 6 rupees. The bank pays an interchange fee to the operator of the ATM. This applies when a customer makes a transaction at an ATM that does not belong to the card-issuing bank.
Meanwhile, the RBI will penalise the banks if the ATMs remain out of cash. Why? The inconvenience caused to the public due to the non-availability of cash in the machines led the Apex Bank of India to take this decision. In addition, if the machines fail to dispense cash for more than 10 hours in a month, the bank will face a penalty of 10,000 (N55,000) rupees per ATM.
In the short term
When will the penalty apply?
When the customer cannot draw cash due to the non-availability of cash in a particular ATM.
Who will impose the penalty?
The person under whose jurisdiction the ATMs are located.
Can we impose this penalty in Nigeria?
Yes.
Who will collect the fees?
MC Oluomo.
Who is he?
The man who brought your driver’s license when you did not pass the test!
