The Central Bank of Nigeria, CBN, has threatened to penalise banks that compel customers to withdraw amounts lower than 20 thousand Naira per transaction from Automated Teller Machines.
CBN disclosed this in a ‘Question and Answer’ explainer released on Thursday in reaction to its recent review of ATM withdrawal fees.
It stressed 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 20 thousand Naira per transaction.
It therefore directed affected customers to file such complaints against banks that impose unnecessary restrictions, clarifying that banks must not charge more than the prescribed ATM fees, noting that they can charge less depending on their cost structure and business model.
The Apex bank however, recommended that customers withdraw cash from their own bank’s ATMs to prevent incurring additional fees.
It also urged customers to consider other payment methods, including mobile banking apps, POS terminals, and various digital payment options to reduce ATM withdrawal costs.
“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.
