Emmanuel Ochayi
The Central Bank of Nigeria (CBN) has warned that it will sanction banks that prevent customers from withdrawing amounts of N20,000 or more per transaction from Automated Teller Machines (ATMs). The apex bank made this known in a ‘Question and Answer’ explainer released on Thursday, following the recent review of ATM withdrawal charges.
The CBN stated that ATM charges for withdrawals from other banks’ ATMs—both on-site and off-site—are based on the assumption that customers can access up to N20,000 per transaction.
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The CBN made it clear that any bank compelling customers with sufficient funds to withdraw less than N20,000 per transaction would be in violation of its regulations.
“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,” the CBN stated.
READ ALSO: CBN Announces New ATM Transaction Fees Effective March 1, Sparks Outrage Among Nigerians
The apex bank further directed affected customers to report such incidents for action.
Customers Urged to Report Cases to CBN
To ensure compliance, the CBN has asked customers to file complaints against banks imposing these restrictions. The bank provided an official email address for such complaints.
“Consumers 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 statement read.
CBN Clarifies ATM Charges
The CBN also clarified that banks must not exceed the prescribed ATM fees, although they are allowed to charge less depending on their operational costs and business models.
“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 CBN explained.
Customers Advised to Use Their Bank’s ATMs
The CBN recommended that customers withdraw cash from ATMs operated by their own banks to avoid additional charges. It also encouraged the use of alternative payment methods.
The statement read: “To reduce ATM withdrawal costs, customers are advised to use other payment options, including mobile banking apps, POS terminals, and digital payment solutions.”
With this directive, the CBN aims to ensure that banks comply with its guidelines while giving customers better access to their funds.
Emmanuel Ochayi is a journalist. He is a graduate of the University of Lagos, School of first choice and the nations pride. Emmanuel is keen on exploring writing angles in different areas, including Business, climate change, politics, Education, and others.
