The Central Bank of Nigeria (CBN) has issued a directive prohibiting banks from restricting customers from withdrawing amounts below ₦20,000 per transaction at Automated Teller Machines (ATMs), provided the customer has sufficient funds and requests a higher amount. This move aims to protect customers from undue limitations and ensure seamless access to their funds.
In a recent Q&A explainer following its review of ATM withdrawal fees, the CBN clarified that banks must allow customers to withdraw up to ₦20,000 per transaction at ATMs. The apex bank emphasized that any bank imposing lower withdrawal limits, despite the customer’s request for a higher amount, would face sanctions. This regulation applies to both on-site and off-site ATMs operated by other banks.
The CBN also reiterated that while banks cannot exceed the stipulated ATM fees, they are free to charge lower amounts based on their cost structures and business strategies. Customers experiencing restrictions are encouraged to report such incidents to the CBN via [[email protected]].
While this directive is a win for customers, it may pose challenges for banks. Financial institutions will need to ensure that their ATMs are adequately stocked to meet the increased withdrawal demands.
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For entrepreneurs and business owners, this development is significant. Many SMEs depend on quick access to cash for transactions, especially in sectors where digital payment systems are not yet fully embraced. Low ATM withdrawal limits have often forced business owners to make multiple transactions, incurring additional fees and wasting valuable time.
To minimize costs, the CBN advises customers to use their bank’s ATMs, which typically do not incur extra charges. Additionally, the apex bank encourages the use of alternative payment methods, such as mobile banking apps, POS terminals, and other digital platforms, to reduce reliance on ATM withdrawals and associated fees.
This move underscores its commitment to creating a more business-friendly environment. For business owners, this is an opportunity to streamline operations and focus on growth, knowing that access to cash will no longer be a hindrance.
