By Gwurld4026 
CBN’s Action Against Banks with N20,000 ATM Limits
The Central Bank of Nigeria (CBN) has issued a directive warning banks against limiting Automated Teller Machine (ATM) withdrawals to amounts below ₦20,000 per transaction. This move comes in response to concerns that some financial institutions are restricting customers from withdrawing higher sums, even when sufficient funds are available in their accounts.
According to the CBN, ATM charges for withdrawals made 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 compels a customer with sufficient funds 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 has also revised ATM withdrawal fees, effective from March 1, 2025. Withdrawals from ATMs belonging to a customer’s own bank will remain free. However, using another bank’s ATM will incur a charge of ₦100 per ₦20,000 withdrawal at on-site ATMs. For off-site ATMs, an additional surcharge of up to ₦500 per transaction will apply. International ATM withdrawals will be charged based on cost recovery, meaning customers will bear the exact fee applied by the international acquirer.
Customers who experience restrictions on withdrawing up to ₦20,000 per transaction are encouraged to report such incidents to the CBN’s Consumer Protection Department via [email protected].
The CBN emphasizes that while banks must not charge beyond the prescribed fees, they may choose to reduce fees based on their cost structure and business strategies. The apex bank also advises customers to utilize their own bank’s ATMs whenever possible and to consider alternative payment methods, such as mobile banking, Point of Sale (POS) transactions, and electronic transfers, to minimize dependence on cash withdrawals.