CBN Cracks Down on Banks Imposing ATM Withdrawal Limits Below ₦20,000
The Central Bank of Nigeria (CBN) has issued a stern warning to commercial banks imposing unnecessary ATM withdrawal limits on customers.
The apex bank stated that any financial institution restricting withdrawals to less than ₦20,000 per transaction—despite customers having sufficient funds—will face sanctions.
This announcement came in a recent Q&A explainer, clarifying the new rules following CBN’s review of ATM withdrawal fees.
Banks Must Comply with Withdrawal Limits
According to the CBN, the policy ensures that customers can access their funds without undue restrictions. The directive states:
“Any bank that forces customers to withdraw less than ₦20,000 per transaction, despite sufficient funds, will be penalized for violating this regulation.”
The CBN further urged customers facing such restrictions to report their banks via [email protected].
Understanding ATM Charges
The CBN also clarified that:
✅ Banks cannot charge beyond the approved ATM fees.
✅ Financial institutions may charge lower fees based on their business model.
✅ Customers should use their bank’s ATM to avoid extra fees.
✅ Alternative digital payment methods like mobile banking, POS, and online transfers can help minimize ATM withdrawal charges.
Encouraging Cashless Transactions
To reduce dependency on cash withdrawals, the CBN advised Nigerians to embrace cashless transactions via banking apps, online transfers, and digital payment platforms.
Do you think this move will improve banking services? Let us know in the comments!
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