CBN to Sanction Banks Setting ATM Withdrawal Limits Below ₦20,000

The Central Bank of Nigeria (CBN) has cautioned banks against limiting ATM withdrawals to amounts below N20,000 per transaction, warning that non-compliance will result in sanctions. This directive comes amid customer concerns over the recently revised ATM withdrawal fees.

Earlier this week, the CBN announced an increase in ATM withdrawal charges, stating that, effective March 1, customers will be charged N100 for every N20,000 withdrawn from another bank’s on-site ATM.

Additionally, withdrawals from an off-site ATM will attract an extra surcharge of up to N500 per transaction, which will be disclosed to customers at the point of withdrawal.

Clarifying the policy in a document addressing frequently asked questions, the apex bank stated “The fees are based on banks allowing customers to withdraw up to N20,000 per transaction. Any bank that compels a customer with sufficient funds in his/her account to withdraw less than N20,000 per transaction against the customer’s desire for a higher sum would be contravening this regulation’s spirit and sanctioned appropriately.”

CBN further urged customers to report any violations, stating “Consumers that are denied the right to withdraw up to N20,000 per transaction are encouraged to file a complaint with the CBN using cpd@cbn.gov.ng.”

The regulator also stressed that banks “are not allowed to charge more than the fees prescribed in the circular.” However, it noted that “there is flexibility for a bank to charge a lower amount depending on its cost structure and business development drive.”

To avoid ATM transaction fees, CBN advised customers “You should withdraw money from your bank’s ATM (On-Us transaction) to avoid the transaction fees. Additionally, limiting your use of off-site ATMs is advisable to minimise the surcharge. Further, consumers can explore other payment channels such as mobile apps, POS devices for payments, etc.”