CBN Warns Banks Against Pegging ATM Withdrawals Below N20,000

The Central Bank of Nigeria (CBN) has issued a warning to banks that they will face penalties if they force customers to withdraw amounts lower than N20,000 per transaction from Automated Teller Machines (ATMs) when the customer has sufficient funds and requests a higher sum.

This directive was revealed in a ‘Question and Answer’ explainer that accompanied the CBN’s recent review of ATM withdrawal fees. The apex bank emphasized that ATM charges for withdrawals made from both on-site and off-site ATMs of other banks are based on the expectation that customers can withdraw up to N20,000 per transaction.

The CBN stated, “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.”

Customers who are denied the right to withdraw up to N20,000 per transaction have been encouraged to file complaints with the CBN via the email address cpd@cbn.gov.ng.

In the statement, the CBN also clarified that banks must not charge more than the prescribed ATM fees. While banks can charge lower fees based on their individual cost structures and business models, the charges and surcharges are capped, and banks are prohibited from exceeding the set limits.

The CBN also advised customers to use their own bank’s ATMs to avoid incurring additional charges. Additionally, the bank recommended that customers explore alternative payment methods such as mobile banking apps, Point of Sale (POS) terminals, and digital payment options to help reduce the cost of ATM withdrawals.