The Central Bank of Nigeria, CBN, has clarified that the N100 fee subsists for banks’ customers withdrawing less than N20,000 cash from other banks’ Automated Teller Machines.
The clarification comes just as the apex bank slammed Nigerian banks against limiting ATM withdrawals below N20,000 per transaction.
In a Frequently Asked Questions document released by the bank on its website on Thursday, the CBN explained that the reason for applying charges for every N20,000 ATM withdrawal was designed to prevent customers from being compelled to break their transaction withdrawals to less than N20,000 per withdrawal.
“Yes, the fee of N100 will apply if you withdraw less than N20,000 from another bank (a bank other than the one that issued your payment card).
“The reason for applying the fee for every N20,000 withdrawal is to prevent customers from being compelled to break their withdrawals to less than N20,000 per withdrawal”, the apex bank stated.
CBN further said 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 the regulation and will be sanctioned appropriately.
The proposed CBN’s revised ATM withdrawal charges is to take effect from March 1, 2025.
