The Central Bank of Nigeria (CBN) has warned that it will impose sanctions on banks that impose Automated Teller Machine (ATM) withdrawal limits of less than N20,000 per transaction.
This announcement was made in a document addressing concerns over recent changes in ATM withdrawal fees.
Earlier this week, the CBN announced an increase in ATM transaction fees. Effective March 1st, bank customers will incur a N100 charge for every N20,000 withdrawn from ATMs of other banks. According to a circular issued to banks and financial institutions, the CBN outlined the new fee structure:
- On-Us ATM Transactions: No charge for withdrawals made at the customer’s own bank’s ATM.
- Not-On-Us ATM Transactions: Withdrawals made at another bank’s ATM will attract a N100 charge for every N20,000.
- Off-site ATMs: Withdrawals will incur a N100 charge plus an additional surcharge of up to N500 per N20,000.
The surcharge, which is collected by the ATM operator, must be clearly disclosed to the consumer at the point of withdrawal.
The CBN also clarified that international withdrawals (whether debit or credit card) will incur a cost recovery fee, reflecting the exact charge by the international acquirer.
Furthermore, the three free monthly withdrawals previously allowed for Remote-On-Us (withdrawals from ATMs of other banks) are no longer applicable under Section 10.6.2 of the CBN Guide.
In response to growing concerns about ATM withdrawal limits, the CBN released a FAQ document to clarify the implementation of these changes.
The CBN emphasized that the new fees are applicable to banks allowing customers to withdraw up to N20,000 per transaction. Any bank that forces a customer with sufficient funds to withdraw less than N20,000 against their wishes will be violating these regulations and will be subject to sanctions.
Customers who are denied the right to withdraw up to N20,000 per transaction are encouraged to file complaints with the CBN at cpd@cbn.gov.ng.
The CBN further clarified that banks cannot charge more than the specified fees but may charge less based on their cost structure and business objectives.
The CBN also provided tips for consumers to avoid ATM transaction fees:
- Withdraw from your bank’s own ATM (On-Us transactions) to avoid charges.
- Limit the use of off-site ATMs to minimize surcharges.
- Explore alternative payment methods, such as mobile apps and POS devices.
