₦airaland Forum

By Elizabeth Adegbesan


The Central Bank of Nigeria, CBN, has threatened to sanction banks that limit Automated Teller Machines (ATM) withdrawal to less than N20,000 per transaction.

The apex bank disclosed this in a document addressing concerns over the reviewed fees on ATM withdrawal.

Recall that CBN on Tuesday increased ATM transaction withdrawal fees, saying, from March 1st, bank customers will pay N100 charge for every N20,000 withdrawal from the on-site ATM of other banks.

The CBN in a circular to banks and other financial institutions, the CBN said, “ATM Transaction Fees On-Us for customers withdrawing at the ATM of the customer’s financial institution in Nigeria with No charge.

“Not-On-Us for withdrawal from another institution’s ATM in Nigeria; On-site ATMs will attract a charge of N100 per N20,000 withdrawal.

“Off-site ATMs will attract a charge of N100 plus a surcharge of not more than N500 per N20,000 withdrawal.

“The surcharge, which is an income of the ATM deployer/acquirer, shall be disclosed at the point of withdrawal to the consumer.

“International Withdrawals (per transaction) whether debit/credit card: Cost Recovery – exact charge by international acquirer.

“Furthermore, the three free monthly withdrawals allowed for Remote-On-Us (other bank’s customers/Not-On-Us consumers) in Nigeria under Section 10.6.2 of the Guide shall no longer apply.”

However, following widespread concerns over the limit on ATM cash withdrawal by banks, the apex and yesterday released a list Frequently Asked Question, FAQ, to clarify implementation of the new charge.

The CBN noted that the charges for withdrawals made from other banks on-site and off-site ATMs are based on banks allowing customers to withdraw up to N20,000 per transaction.

CBN said: “The fees are based on banks allowing customers to withdraw up to N20,000 per transaction. Any bank that compels a customer with sufficient funds in his/her account to withdraw less than N20,000 per transaction against the customer’s desire for a higher sum would be contravening this regulation’s spirit and sanctioned appropriately.

“Consumers that are 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 regulator also explained that banks can not charge more than the stated fees, but a bank can charge a lower amount depending on its cost structure, among other things.

“The charges and surcharges are capped. Thus, banks and other financial institutions are not allowed to charge more than the fees prescribed in the circular.

“Note also that though the surcharge per transaction is capped, there is flexibility for a bank to charge a lower amount depending on its cost structure and business development drive.

To avoid paying ATM transaction fees, the apex bank said: “You should withdraw money from your bank’s ATM (On-Us transaction) to avoid the transaction fees.

“Additionally, limiting your use of off-site ATMs is advisable to minimise the surcharge.

“Further, consumers can explore other payment channels such as mobile apps, POS devices for payments, etc.”

Acekidc4:
Collecting Money at Atms can be so so frustrating at times🧐🤨

opera1:
What if I decided to be withdrawing 19k until it reach 50k?

Acekidc4:
Collecting Money at Atms can be so so frustrating at times🧐🤨

Goldbw122:
Who still dey go bank ATM machine, wey POS dey.. forget the charges and remember the stress...

GanagiBitrus:
Why should they even be limiting withdrawals, only to empower PoS operators.

Maybe they should just ban all these PoS operators except those using it for sales of goods & services. That will make enough cash available in the banks.

Emeskhalifa:
Lols and go back to queuing 4hrs to withdraw money either inside the bank or ATM. ..

Discountsempai:
The banks appear to have already started implementing it

Yesterday, I went to an ATM (FCMB) to withdraw money . Now, this ATM restricts your withdrawals to N5000 , and only alllows two or three withdrawals if you are using another bank's card.

This time, I withdrew 10000 at once, using another bank card.

I knew something was up.

GanagiBitrus:
Right, there is no quick fix for problems in this country.

But I don't think it will be like before. Many Nigerians & businesses are now embracing online & cashless transactions.
There will be more cash available at banks & ATM instead of these ATM Operators that are everywhere.