The Central Bank of Nigeria (CBN) warns banks against limiting Automated Teller Machine (ATM) withdrawals to amounts below ₦20,000 per transaction, stating that any bank found violating this directive will face sanctions......CONTINUE READING THE ARTICLE FROM THE SOURCE>>>>>
In a statement released on Thursday through a ‘Question and Answer’ explainer, the apex bank clarifies that ATM withdrawal charges apply based on the expectation that customers can withdraw up to ₦20,000 per transaction from other banks’ ATMs, whether on-site or off-site.
“Any bank that forces a customer with sufficient funds to withdraw less than ₦20,000 per transaction, despite their preference for a higher amount, violates this regulation and will be sanctioned,” the CBN states.
The central bank urges affected customers to report cases where banks impose withdrawal limits below the stipulated amount. Complaints can be submitted via cpd@cbn.gov.ng.
Additionally, the CBN emphasizes that banks must adhere to prescribed ATM charges but can charge lower fees based on their cost structure and business model.
“The charges and surcharges have a maximum cap, meaning financial institutions cannot exceed the fees outlined in the directive. However, banks may choose to impose lower charges depending on their cost structure and business strategy,” the statement reads.
To avoid unnecessary charges, the CBN advises customers to prioritize withdrawing cash from their own bank’s ATMs. It also encourages the use of alternative payment methods such as mobile banking, POS terminals, and digital payment solutions to reduce ATM withdrawal costs.