The Central Bank of Nigeria (CBN) has threatened to penalise banks that compel customers to withdraw amounts lower than N20,000 per transaction from Automated Teller Machines (ATMs).
The apex bank gave the warning in a “Question and Answer” explainer released on Thursday in reaction to its recent review of ATM withdrawal fees.
Ripples Nigeria reports that the apex bank a few days ago scrapped the long-standing policy that allowed customers to make three free withdrawals per month from other banks’ ATMs.
Now, every time a customer withdraws from an ATM that doesn’t belong to their bank, a charge will apply—N100 per N20,000 for on-site ATMs and up to N500 for off-site machines.
Addressing some concerns that trailed the new policy, the CBN stressed that ATM charges for withdrawals made from other banks’ ATMs both on-site and off-site are based on the expectation that customers can 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,” it stated.
The CBN has directed affected customers to file such complaints against banks that impose unnecessary 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 apex bank also clarified that banks must not charge more than the prescribed ATM fees, though they can charge less depending 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 CBN, however, recommended that customers withdraw cash from their own bank’s ATMs to prevent incurring additional fees.
By: Babajide Okeowo