The Central Bank of Nigeria (CBN) has said banks may charge less than the officially prescribed fees for withdrawals from their Automated Teller Machines (ATM), depending on their cost structure and business model.
The apex bank however warned that banks are not allowed to charge more than the official rates and defaulting banks would be penalised.
The CBN made the clarifications in a ‘Question and Answer’ explainer released on Thursday in reaction to its recent review of ATM withdrawal fees.
“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,” it said.
The regulator also threatened to penalise banks that compel customers to withdraw amounts lower than N20,000 per transaction from Automated Teller Machines.
It 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 advised 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 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.
