CBN warns banks against limiting ATM withdrawals below ₦20,000

The Central Bank of Nigeria (CBN) has vowed to punish banks that force customers to withdraw amounts lower than N20,000 per transaction from their Automated Teller Machines (ATMs).

This was revealed in a ‘Question and Answer’ explainer released on Thursday.

The apex bank also stressed that ATM charges for withdrawals made from other banks’ ATMs both on-site and off-site are based on the expectation that customers can withdraw up to N20,000 per transaction.

“Any bank that compels a customer with sufficient funds in their account to withdraw less than N20,000 per transaction, against their desire for a higher sum, would be contravening this regulation and will be sanctioned appropriately,” it stated.

The CBN has directed affected customers to file such complaints against banks that impose unnecessary restrictions.

“Consumers denied the right to withdraw up to N20,000 per transaction are encouraged to file a complaint with the CBN using [email protected].”

The apex bank also clarified that banks must not charge more than the prescribed ATM fees, though they can charge less depending on their cost structure and business model.

“The charges and surcharges are capped, meaning banks and other financial institutions cannot charge more than the fees stated in the circular. However, a bank can charge a lower amount depending on its cost structure and business development drive.”

The CBN, however, recommended that customers withdraw cash from their own bank’s ATMs to prevent incurring additional fees.