CBN Sets N20,000 ATM Withdrawal Limit: Banks Face Sanctions for Non-Compliance

The Central Bank of Nigeria (CBN) has issued a warning to banks that they will face sanctions if they limit ATM withdrawals to less than N20,000 per transaction.

This move comes after the CBN increased ATM transaction withdrawal fees, with customers set to pay N100 for every N20,000 withdrawal from another bank’s ATM starting March 1st.

According to the CBN, banks must allow customers to withdraw up to N20,000 per transaction, and any bank that compels a customer to withdraw less than this amount will be sanctioned.

Customers who experience such restrictions are encouraged to file a complaint with the CBN.

To clarify the implementation of the new charge, the CBN released a list of Frequently Asked Questions (FAQs). The regulator explained that banks cannot charge more than the stated fees, but they can charge a lower amount depending on their cost structure.

The CBN noted that the charges for withdrawals made from other banks on-site and off-site ATMs are based on banks allowing customers to withdraw up to N20,000 per transaction.

CBN said: “The fees are based on banks allowing customers to withdraw up to N20,000 per transaction. Any bank that compels a customer with sufficient funds in his/her account to withdraw less than N20,000 per transaction against the customer’s desire for a higher sum would be contravening this regulation’s spirit and sanctioned appropriately.

“Consumers that are denied the right to withdraw up to N20,000 per transaction are encouraged to file a complaint with the CBN using cpd@cbn.gov.ng.”

The regulator also explained that banks can not charge more than the stated fees, but a bank can charge a lower amount depending on its cost structure, among other things.

“The charges and surcharges are capped. Thus, banks and other financial institutions are not allowed to charge more than the fees prescribed in the circular.

“Note also that though the surcharge per transaction is capped, there is flexibility for a bank to charge a lower amount depending on its cost structure and business development drive.

To avoid paying ATM transaction fees, the apex bank said: “You should withdraw money from your bank’s ATM (On-Us transaction) to avoid the transaction fees.