CBN Revises ATM Fees, Ends Three Free Monthly Withdrawals for Bank Customers

Salim Abubakar

2 weeks ago

CBN Revises ATM Fees, Ends Three Free Monthly Withdrawals for Bank Customers

In a major policy shift, the Central Bank of Nigeria (CBN) has announced the removal of the three free monthly ATM withdrawals previously granted to bank customers. This means that every ATM withdrawal will now attract a fee, marking a significant change in Nigeria’s banking system.

Contents

1 New ATM Withdrawal Policy
2 Why CBN Made This Change
3 Related Post:
4 Impact on Bank Customers
5 How to Adapt to the New ATM Charges
6 Final Thoughts
- 6.1 Source: Central Bank of Nigeria (CBN)
- 6.2 Share this:

New ATM Withdrawal Policy

No More Free Withdrawals: Bank customers will no longer enjoy three free ATM withdrawals per month.
Uniform Withdrawal Fee: A standard fee of ₦35 will now apply to each ATM withdrawal, regardless of the number of transactions made in a month.

Why CBN Made This Change

The CBN has explained that this decision is part of its broader strategy to promote a cashless economy, improve financial inclusion, and reduce the costs associated with cash handling. The policy aims to:

Encourage Digital Transactions: The removal of free withdrawals is expected to push more Nigerians toward mobile banking, online payments, and point-of-sale (POS) transactions.
Reduce Cash Dependency: By discouraging excessive cash withdrawals, the CBN hopes to strengthen the adoption of electronic payments.
Enhance Financial System Efficiency: The banking system will become more cost-effective and streamlined as fewer people rely on cash transactions.

Impact on Bank Customers

With this new policy, Nigerians will need to adjust how they access cash and conduct transactions. The following changes are expected:

Increased Use of Digital Banking: More people may start using banking apps, USSD codes, and online transfers instead of cash withdrawals.
Higher ATM Costs: Customers who frequently use ATMs will now need to factor in the extra charges.
More POS Transactions: Instead of withdrawing cash, customers might opt to make direct payments using their debit cards.

How to Adapt to the New ATM Charges

To avoid excessive withdrawal fees, customers can take the following steps:

Plan Withdrawals Carefully: Instead of making multiple small withdrawals, customers can withdraw a larger sum at once to reduce the number of transactions.
Use Digital Payment Methods: Online banking, mobile transfers, and POS transactions can help reduce the need for ATM withdrawals.
Stay Updated on Banking Policies: Customers should check with their banks for any updates on transaction fees and other services.

Final Thoughts

The CBN’s decision to remove free ATM withdrawals is a clear push towards a more digital financial system. While this change may be inconvenient for some, it aligns with global banking trends that prioritize digital transactions over cash-based systems. Nigerians are encouraged to explore alternative banking methods to minimize costs and take advantage of digital financial services.