CBN warns banks towards limiting ATM withdrawals under ₦20,000

The Central Bank of Nigeria has threatened to penalise banks that compel prospects to withdraw quantities decrease than N20,000 per transaction from Automated Teller Machines.

The apex financial institution disclosed this in a ‘Query and Reply’ explainer launched on Thursday in response to its latest evaluate of ATM withdrawal charges.

It burdened that ATM prices for withdrawals produced from different banks’ ATMs each on-site and off-site are primarily based on the expectation that prospects can withdraw as much as N20,000 per transaction.

“Any financial institution that compels a buyer with enough funds of their account to withdraw lower than N20,000 per transaction, towards their want for a better sum, could be contravening this regulation and might be sanctioned appropriately,” it acknowledged.

The CBN has directed affected prospects to file such complaints towards banks that impose pointless restrictions.

“Customers denied the best to withdraw as much as N20,000 per transaction are inspired to file a criticism with the CBN utilizing [email protected].”

The apex financial institution additionally clarified that banks should not cost greater than the prescribed ATM charges, although they’ll cost much less relying on their price construction and enterprise mannequin.

“The costs and surcharges are capped, which means banks and different monetary establishments can’t cost greater than the charges acknowledged within the round. Nevertheless, a financial institution can cost a decrease quantity relying on its price construction and enterprise growth drive.”

The CBN, nonetheless, really useful that prospects withdraw money from their very own financial institution’s ATMs to forestall incurring extra charges.

It additionally urged prospects to contemplate different fee strategies, together with cell banking apps, POS terminals, and numerous digital fee choices to scale back ATM withdrawal prices.