CBN Warns Banks Against Limiting ATM Withdrawals Below N20,000

The Central Bank of Nigeria (CBN) has warned banks against restricting Automated Teller Machine (ATM) withdrawals to less than N20,000 per transaction. The apex bank stated that any financial institution found violating this directive would face sanctions.

The warning was contained in a document addressing public concerns over the newly reviewed ATM withdrawal charges.

Starting March 1, bank customers will be charged N100 for every N20,000 withdrawn from an ATM belonging to another bank. The CBN’s circular outlined different fees for ATM transactions:

• On-Us Transactions (withdrawals from a customer’s own bank ATM): No charge.
• Not-On-Us Transactions (withdrawals from another bank’s ATM):
  • On-site ATMs (within the bank premises) will attract a N100 charge per N20,000 withdrawal.
  • Off-site ATMs (located outside bank premises) will attract a N100 charge plus an additional surcharge of up to N500 per N20,000 withdrawal. The surcharge will be disclosed to customers at the point of withdrawal.
• International ATM Withdrawals: Charges will be based on the exact cost set by the international acquirer.

Additionally, the CBN announced the removal of the three free monthly withdrawals previously granted to customers using other banks’ ATMs.

The apex bank emphasized that banks must allow customers to withdraw up to N20,000 per transaction and warned that any bank forcing customers to withdraw less than this amount despite having sufficient funds will face penalties. Customers experiencing such restrictions are encouraged to report the issue via cpd@cbn.gov.ng.

While banks cannot charge more than the prescribed fees, they are permitted to charge lower fees based on their cost structure.

To avoid extra charges, the CBN advised customers to withdraw from their bank’s ATMs and minimize the use of off-site ATMs.