CBN Warns Banks Against Imposing ATM Withdrawal Limits

In a Q&A explainer released after its recent review of ATM withdrawal fees, the CBN reiterated that customers are entitled to withdraw up to ₦20,000 per transaction on ATMs operated by other banks.

The apex bank stated:

“Any bank that forces a customer with adequate funds to withdraw less than ₦20,000 per transaction, against their wish for a higher sum, is violating regulations and will face sanctions.”

Customers Encouraged to Report Non-Compliance

The CBN urged customers to report any violation of this directive, stating:

“Consumers denied the right to withdraw up to ₦20,000 per transaction should file a complaint with the CBN via cpd@cbn.gov.ng.”

Additionally, the apex bank clarified that while banks cannot exceed the regulated ATM charges, they may charge lower fees based on their business model.

“The capped charges mean banks and financial institutions cannot charge more than the stipulated fees, but they are free to charge less based on their cost structure and operational strategies,” the statement added.

CBN Advises Alternative Payment Methods

To reduce ATM withdrawal fees, the CBN encouraged customers to use alternative payment options such as mobile banking apps, POS terminals, and other digital channels.

Furthermore, customers were advised to use ATMs belonging to their banks to avoid extra fees charged by third-party machines.