CBN Issues Warning to Banks Over Restricting ATM Withdrawals Below ₦20,000

 

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The Central Bank of Nigeria (CBN) has issued a stern warning to banks restricting customers from withdrawing up to ₦20,000 per transaction at Automated Teller Machines (ATMs), even when sufficient funds are available. This warning comes as part of the CBN’s efforts to enforce compliance with its regulations and protect customers’ rights. In a recent Q&A explainer on its website, the apex bank clarified that such restrictions violate its policies and will attract sanctions.

The CBN emphasized that ATM charges for withdrawals from other banks’ ATMs—whether on-site or off-site—are structured on the premise that customers should be able to withdraw up to ₦20,000 per transaction. Any bank that limits withdrawals below this amount, despite the customer’s request for a higher sum, is acting against the CBN’s guidelines. “Any bank that compels a customer with sufficient funds in their account to withdraw less than ₦20,000 per transaction, against their desire for a higher sum, would be contravening this regulation and will be sanctioned appropriately,” the CBN stated.

To address these violations, the CBN has urged affected customers to report banks imposing such restrictions. Customers experiencing these issues are encouraged to file complaints with the CBN via the email address cpd@cbn.gov.ng. This move aims to empower customers to hold banks accountable and ensure compliance with the regulator’s policies.

Additionally, the CBN reiterated that banks must not charge customers beyond the prescribed ATM fees. However, they are permitted to charge lower amounts based on their cost structure and business model. This clarification seeks to promote transparency and fairness in banking operations while safeguarding customers’ interests.

The CBN’s warning underscores its commitment to enforcing regulations that protect consumers and maintain trust in the banking system. By addressing these issues, the regulator aims to enhance customer satisfaction and ensure that banks operate within the bounds of the law. Customers are encouraged to remain vigilant and report any violations to the CBN for prompt action.

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