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The Central Bank of Nigeria (CBN) has warned banks against limiting ATM withdrawals below ₦20,000 per transaction, threatening sanctions for non-compliance. The new policy also introduces a ₦100 fee for withdrawals from other banks’ ATMs. Customers are encouraged to report violations and explore alternative payment methods.

The Central Bank of Nigeria (CBN) has issued a warning to banks that restrict customers from withdrawing up to ₦20,000 per transaction at ATMs. This comes as part of a broader effort to regulate cash transactions and improve banking services.

In a recently released circular, the CBN emphasized that any financial institution enforcing a withdrawal limit below ₦20,000 is violating its directives and will face penalties. The policy also includes a charge of ₦100 for withdrawals made at other banks’ ATMs, while withdrawals at the customer's own bank remain free. Additionally, off-site ATM withdrawals will incur an extra surcharge of up to ₦500 per transaction.

To clarify concerns surrounding these new regulations, the apex bank published a Frequently Asked Questions (FAQ) document explaining that banks cannot impose additional charges beyond the approved limits. Customers who experience restrictions on their withdrawals have been encouraged to report such cases directly to the CBN for intervention.

Furthermore, the CBN advised consumers to use their bank’s ATMs when possible to avoid transaction fees and consider alternative payment options like mobile banking and POS transactions.

The move has sparked discussions among customers, with some expressing frustration over increasing banking fees. However, the CBN maintains that these measures are aimed at improving financial transactions and ensuring fair banking practices across the country.