CBN Instructs Access, Zenith, UBA, Other Banks on ATM Withdrawal Limit Below N20,000
- The Central Bank of Nigeria has issued a warning to banks against limiting ATM withdrawals below N20,000
- The apex bank noted that ATM charges for withdrawals from other banks' ATMs are based on the expectation that customers can withdraw up to N20,000 per transaction
- The CBN also clarified that ATM withdrawal charges apply only to transactions at other banks' ATMs and not at the customer's bank
Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
The Central Bank of Nigeria (CBN) said it will penalise banks that prevent customers with sufficient funds from withdrawing up to N20,000 per transaction.
The apex bank disclosed this in a ‘FAQ document explainer released on Thursday in reaction to its recent review of automated teller machine (ATM) withdrawal fees.
Source: Getty Images
Part of 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.”
The CBN 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.
CBN clarifies ATM charges
The apex bank also noted that withdrawals from a customer’s 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.
It added that 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 also clarified that customers withdrawing less than N20,000 from another bank’s ATM will still be charged the N100 fee.
It said:
"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 emphasised that banks cannot charge more than the prescribed fees, and any additional charges would be considered a violation.
Part of the document reads:
"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.”
CBN releases email, phone numbers to report banks
The CBN has directed affected customers to file complaints against banks that impose unnecessary restrictions.
He said:
"“Consumers 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 CBN, however, recommended that customers withdraw cash from their own bank’s ATMs to prevent incurring additional fees.
It also urged customers to consider other payment methods, including mobile banking apps, POS terminals, and various digital payment options to reduce ATM withdrawal costs.
CBN fines 9 banks N1.35trn for not dispensing cash in ATMs
Legit.ng reported that CBN fined nine banks for failing to dispense cash via ATMs during the Christmas holidays.
The apex bank fined the banks N150 million each, saying that the fines would be deducted from their accounts.
PAY ATTENTION: Сheck out news that is picked exactly for YOU ➡️ find the “Recommended for you” block on the home page and enjoy!
Source: Legit.ng
