CBN to penalize banks  restraining customers withdrawal bellow N20,000  

The Central Bank of Nigeria (CBN) has cautioned  that it will sanction any bank that prevents customers with sufficient funds from withdrawing up to N20,000 per transaction.

The CBN new  directive, which takes effect from March 1, 2025,  posted in the CBN circular dated February 10, 2025, and it became part of the revised ATM transaction fees introduced to enhance efficiency and encourage the deployment of more ATMs across the country.

The frequently Asked Question (FAQ) document on the new direction posted on the CBN  website said the fees are based on banks allowing customers to withdraw up to N20,000 per transaction.

The apex said that any bank that compels a customer with sufficient funds in her account to withdraw less than N20,000 per transaction against the customer’s desire for a higher sums, would be contravening this regulation’s spirit and sanctioned appropriately.”

The apex bank revised ATM fees and withdrawal limits under the new structure, withdrawals from a customer’s own bank ATMs remain free of charge. 

It further said that  withdrawals from another bank’s ATM (Not-On-Us transactions) will attract a charge of N100 per N20,000 withdrawal. If the transaction is carried out at an off-site ATM—those located outside bank premises such as shopping malls or fuel stations—an additional surcharge of up to N500 may apply.

The CBN also clarified that customers withdrawing less than N20,000 from another bank’s ATM will still be charged the N100 fee. This is to prevent users from breaking up withdrawals into smaller amounts to avoid multiple charges. The three free monthly withdrawals previously allowed for transactions at other banks’ ATMs have also been removed.

According to CBN” the fee of N100 will apply if you withdraw less than N20,000 from another bank (a bank other than the one that issued your payment card). The reason for applying the fee for every N20,000 withdrawal is to prevent customers from being compelled to break their withdrawals to less than N20,000 per withdrawal. “In other words, ATM transactions will incur a base fee of N100 per transaction.

“It is also important to note that a tiered fee structure will apply for transactions exceeding N20,000, with an additional N100 charged for each subsequent withdrawal of N20,000 or portion thereof” 

The CBN further said that banks cannot charge more than the prescribed fees, and any additional charges would be considered a violation. While banks have some flexibility to reduce charges based on their business strategy, they cannot exceed the stated fees.

The apex bank also encouraged customers to report any contraventions, especially if a bank prevents them from withdrawing up to N20,000 per transaction, despite having sufficient funds. Such complaints can be directed to the CBN Consumer Protection Department