The Central Bank of Nigeria (CBN) has threatened to penalize banks that compel customers to withdraw amounts lower than N20,000 per transaction from automated teller machines.
The CBN disclosed this in a ‘Question and Answer’ explainer released on Thursday in reaction to its recent review of ATM withdrawal fees.
It emphasized that ATM charges for withdrawals made from other banks’ ATMs, both on-site and off-site, are based on the expectation that customers can withdraw up to N20,000 per transaction.
“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,” it stated.
The apex bank has directed affected customers to file such complaints against banks that impose unnecessary restrictions.
“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 apex bank also elucidated that banks must not charge more than the prescribed ATM fees, though they can charge less depending on their cost structure and business model.
“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 apex bank, however, recommended that customers withdraw cash from their own bank’s ATMs to prevent incurring additional fees.
It also advised customers to consider other payment methods, including mobile banking apps, POS terminals, and various digital payment options to reduce ATM withdrawal costs.
