The Central Bank of Nigeria (CBN) has warned banks that limit Automated Teller Machine
(ATM) withdrawals to less than ₦20,000 per transaction that they will face sanctions.
This warning comes after the CBN increased ATM transaction withdrawal fees, effective March 1st.
According to the CBN, bank customers will pay an ₦100 charge for every ₦20,000 withdrawal from another bank’s on-site ATM. Off-site ATMs will attract a charge of ₦100 plus a surcharge of not more than ₦500 per ₦20,000 withdrawal.
Clarifying the New ATM Transaction Fees
The CBN clarified 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 ₦20,000 per transaction.
“The fees are based on banks allowing customers to withdraw up to ₦20,000 per transaction,” the CBN said. “Any bank that compels a customer with sufficient funds in his/her account to withdraw less than ₦20,000 per transaction against the customer’s desire for a higher sum would be contravening this regulation’s spirit and sanctioned appropriately.“
READ ALSO | Central Bank of Nigeria Hikes ATM Withdrawal Fees From March 1
The regulator also explained that banks cannot charge more than the stated fees, but they can charge a lower amount depending on their cost structure.
To avoid paying ATM transaction fees, the CBN advised customers to withdraw money from their bank’s ATM or use other payment channels such as mobile apps and POS devices.
These clarifications were made Thursday, February 13 via Frequently Asked Questions, FAQ on the apex bank’s website following widespread concerns and confusion over the limit on ATM cash withdrawal by certain banks.
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