The Central Bank of Nigeria (CBN) has warned banks that they will face penalties if they force customers to withdraw less than N20,000 per transaction from Automated Teller Machines (ATMs) when the customer has sufficient funds and requests a higher amount.
This warning was issued in a ‘Question and Answer’ document released as part of the CBN’s recent review of ATM withdrawal fees.
Read Also: CBN Reviews ATM Transaction Fees
The CBN emphasized that ATM charges for withdrawals from other banks’ ATMs, both on-site and off-site, are based on the assumption that customers can withdraw up to N20,000 per transaction.
“Any bank that forces a customer with enough funds in their account to withdraw less than N20,000, against their wish for a larger amount, will be violating this regulation and will face appropriate sanctions,” it stated.
The CBN also instructed customers affected by such restrictions to report the issue to the bank and lodge complaints with the CBN at cpd@cbn.gov.ng.
Furthermore, the CBN clarified that banks are not allowed to charge more than the prescribed ATM fees, though they can charge less based on their cost structure and business model.
“The fees are capped, meaning banks cannot charge more than the specified amounts. However, they can charge lower fees depending on their cost structure and business objectives,” the CBN said.
The CBN advised customers to withdraw money from their own bank’s ATMs to avoid extra charges and recommended using alternative payment methods, such as mobile banking apps, POS terminals, and other digital payment solutions, to reduce ATM withdrawal fees.
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