The Central Bank of Nigeria (CBN) has issued a stern warning to commercial banks, cautioning them against imposing unnecessary withdrawal limits on customers using Automated Teller Machines (ATMs).
The apex bank emphasized that customers have the right to withdraw up to ₦20,000 per transaction, even from ATMs operated by banks other than their own, provided they have sufficient funds in their accounts.
In a Q&A explainer released following its recent review of ATM withdrawal fees, the CBN made it clear that any bank found restricting customers to amounts below this threshold would face sanctions.
Any bank that compels a customer with sufficient funds in their account to withdraw less than ₦20,000 per transaction, against their desire for a higher sum, would be contravening this regulation and will be sanctioned appropriately, the CBN stated.
The apex bank urged customers to report cases where they are restricted from withdrawing the stipulated amount. Consumers denied the right to withdraw up to ₦20,000 per transaction are encouraged to file a complaint with the CBN using cpd@cbn.gov.ng, the statement advised.
The CBN also addressed concerns about ATM fees, reiterating that financial institutions must not exceed the approved limits for withdrawal charges.
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 apex bank clarified.
To help customers reduce ATM withdrawal fees, the CBN encouraged the use of alternative payment channels, such as mobile banking apps, POS terminals, and other digital transaction platforms. It further advised customers to withdraw from ATMs belonging to their own banks to avoid extra fees imposed by third-party ATMs.
This directive comes as part of the CBN’s ongoing efforts to regulate banking operations and enhance consumer protection within Nigeria’s financial sector.
