CBN Directs Banks to End N20,000 ATM Withdrawal Limit.

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The Central Bank of Nigeria (CBN) has issued a stern warning to banks that restrict customers from withdrawing up to N20,000 per transaction at Automated Teller Machines (ATMs), despite having sufficient funds and requesting a higher amount.

This warning comes after the CBN’s recent review of ATM withdrawal fees, which revealed that some banks were violating regulations by imposing restrictions on withdrawals. According to the CBN, ATM charges for withdrawals made from other banks’ ATMs—whether on-site or off-site—are structured to allow customers to withdraw up to N20,000 per transaction.

“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,” the CBN stated.

To address potential violations, the regulator has urged affected customers to report banks that impose such restrictions. “Consumers denied the right to withdraw up to N20,000 per transaction are encouraged to file a complaint with the CBN using cpd@cbn.gov.ng,” the CBN advised.

The CBN also reaffirmed that banks must not charge customers beyond the prescribed ATM fees but are allowed to charge lower amounts based on their cost structure and business model. “The charges and surcharges are capped, meaning banks and other financial institutions cannot charge more than the fees stated in the circular. However, a bank can charge a lower amount depending on its cost structure and business development drive,” the statement clarified.

To help customers minimise ATM withdrawal fees, the CBN advised them to withdraw cash from their own bank’s ATMs whenever possible. It also encouraged the use of alternative payment methods such as mobile banking apps, Point of Sale (PoS) terminals, and other digital channels.

Interestingly, some banks have already been imposing restrictions on ATM withdrawals. For instance, Guarantee Trust Bank (GTB) has a withdrawal limit of N5,000 at one of its branches. However, the CBN’s warning is a clear indication that such restrictions will no longer be tolerated.

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