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

• The Central Bank of Nigeria has issued a warning to banks prohibiting customers from withdrawing up to N20,000 per transaction at Automated Teller Machines.

• Apex bank disclosed in Q&A explainer that ATM withdrawal fees restrictions violate regulations and may lead to sanctions.

• The CBN stipulates that customers can withdraw up to N20,000 per transaction from other banks’ ATMs, both on-site and off-site.

The Central Bank of Nigeria (CBN) has issued a stern warning to financial institutions that impose limitations on customers wishing to withdraw up to N20,000 per transaction at Automated Teller Machines (ATMs), even when they possess adequate funds and seek a larger withdrawal amount.

This announcement was made public in a Q&A section on the CBN’s website, following a recent assessment of ATM withdrawal fees. The bank emphasized that such restrictions are in violation of its regulations and will result in penalties.

The CBN clarified that ATM fees for withdrawals conducted at ATMs belonging to other banks—whether located on-site or off-site—are designed to allow customers to 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,” the CBN stated.

To combat potential infractions, the regulatory body has encouraged customers who experience such restrictions to report the offending banks.

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

Furthermore, the CBN reiterated that banks are prohibited from charging customers beyond the established ATM fees, although they may impose lower fees based on their operational costs and business strategies.

“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 statement explained.

To assist customers in reducing ATM withdrawal fees, the CBN advised them to utilize their own bank’s ATMs whenever feasible. It also promoted the use of alternative payment methods, including mobile banking applications, POS terminals, and other digital platforms.