CBN to sanction banks restricting withdrawals below N20,000 

The directive, which takes effect from March 1, 2025, was outlined in the CBN circular dated February 10, 2025, and forms part of the revised ATM transaction fees introduced to enhance efficiency and encourage the deployment of more ATMs across the country.

This is according to the FAQ document on the new direction published by the apex bank on Thursday.

The document read, “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 her account to withdraw less than N20,000 per transaction against the customer’s desire for a higher sums, would be contravening this regulation’s spirit and sanctioned appropriately.”

Under the new structure, withdrawals from a customer’s own bank ATMs remain free of charge. However, withdrawals from another bank’s ATM (Not-On-Us transactions) will attract a charge of N100 per N20,000 withdrawal. If the transaction is carried out at an off-site ATM—those located outside bank premises such as shopping malls or fuel stations—an additional surcharge of up to N500 may apply.

The CBN clarified that customers withdrawing less than N20,000 from another bank’s ATM will still be charged the N100 fee. This is to prevent users from breaking up withdrawals into smaller amounts to avoid multiple charges. The three free monthly withdrawals previously allowed for transactions at other banks’ ATMs have also been removed.

The CBN has also emphasized that banks cannot charge more than the prescribed fees, and any additional charges would be considered a violation. While banks have some flexibility to reduce charges based on their business strategy, they cannot exceed the stated fees.

Additionally, customers are encouraged to report any contraventions, especially if a bank prevents them from withdrawing up to N20,000 per transaction, despite having sufficient funds. Such complaints can be directed to the CBN Consumer Protection Department via [email protected].

To minimize transaction fees, the CBN has advised customers to prioritize withdrawing money from their own bank’s ATMs. It also recommends exploring alternative payment methods such as mobile banking apps, POS transactions, and electronic transfers to reduce reliance on cash withdrawals.

With the implementation of these new fees from March 1, 2025, customers will need to adjust their cash withdrawal habits to avoid accumulating high ATM transaction costs.