The Central Bank of Nigeria (CBN) has issued a strict warning to banks against imposing withdrawal limits below ₦20,000 per transaction at Automated Teller Machines (ATMs). Banks that violate this directive will face sanctions as the apex bank aims to protect customer rights and ensure compliance with its regulations.
Contents
CBN’s Position on ATM Withdrawal Limits
In response to concerns raised by bank customers, the CBN released an official explainer clarifying its stance on ATM withdrawal policies. The statement emphasized that banks must allow withdrawals of up to ₦20,000 per transaction, as this is the basis for ATM withdrawal charges—both for on-site and off-site ATMs operated by different banks.
Banks Face Penalties for Violating Withdrawal Limits
The CBN warned that any bank found restricting withdrawals below ₦20,000 per transaction—despite customers having sufficient funds—will be penalized accordingly. Customers who experience such restrictions are encouraged to report violations by filing a formal complaint with the CBN via cpd@cbn.gov.ng.
Related Post
CBN Settles $7bn FX Backlog, Enhancing Investor Confidence
CBN Delays Direct LGA Fund Allocation to February Over Compliance Issues
Shehu Sani Criticizes CBN for Scrapping Free ATM Withdrawals
CBN Confirms Keystone Bank’s Stability Despite Court Order
CBN sets ₦100 ATM withdrawal fee for transactions below ₦20,000
SERAP Gives CBN 48 Hours to Reverse ATM Fee Hike or Face Legal Action
Regulated ATM Charges and Customer Advisory
The CBN also reaffirmed its commitment to ensuring fair banking charges. While banks are prohibited from exceeding the regulated ATM fees, they are allowed to charge less depending on their operational costs and business strategies.
To minimize ATM withdrawal costs, the CBN recommends customers withdraw cash from their own bank’s ATMs whenever possible. The apex bank also encourages the use of alternative payment methods, including:
✔ Mobile banking apps
✔ POS terminals
✔ Digital payment options
Encouraging a Cashless Economy
By enforcing these regulations, the CBN aims to enhance financial accessibility, protect consumer rights, and promote cashless transactions. As Nigeria continues to embrace digital banking, customers are urged to explore seamless, secure, and cost-effective payment alternatives beyond ATMs.
Final Thoughts
The CBN’s directive reinforces its commitment to ensuring fair banking practices. Customers should remain informed about their rights and report any violations to the CBN for appropriate action. With digital banking options expanding, reducing reliance on cash withdrawals can help minimize costs and improve financial transactions across Nigeria.
Source: Punch