The Central Bank of Nigeria (CBN) has warned commercial banks against charging the recently introduced withdrawal fee on ATM transactions below the N20,000 threshold.
It would be recalled that the apex bank recently approved an N100 charge on withdrawals of N20,000 and above made from other banks.
The new regulation also removed the allowed three free withdrawals hitherto in operation.
The CBN warned banks of stiff penalties if compel customers to withdraw amounts lower than N20,000 per transaction from Automated Teller Machines (ATMs) when they have enough funds and are asking for a greater sum.
Naija Daily News remarked banks usually restrict withdrawers from other banks to N10,000 per withdrawal to multiply the charges.
CBN clarified 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.
“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 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.
It also urged customers to consider other payment methods, including mobile banking apps, POS terminals, and various digital payment options to reduce ATM withdrawal costs.
