CBN Revised ATM Transaction Circular: Banks Can No Longer Limit Withdrawals to Under N20,000

In a new directive aimed at improving customer service and enhancing the availability of cash, the Central Bank of Nigeria (CBN) has introduced a revised circular regarding ATM withdrawal limits. Effective from March 1, 2025, banks are now prohibited from restricting customers to withdrawals of less than N20,000 per transaction, provided they have sufficient funds. Any bank found violating this regulation will face sanctions.

Revised ATM Fees and Transaction Limits

The updated structure maintains that withdrawals from a customer’s own bank’s ATMs will continue to be free. However, transactions conducted at other banks’ ATMs will attract a fee of N100 per N20,000 withdrawn. Additionally, if the ATM is off-site, at shopping malls or gas stations, an extra charge of up to N500 may apply. The CBN has also removed the previous allowance of three free monthly withdrawals for transactions at other banks’ ATMs, ensuring customers now incur fees for all such transactions.

Customer Awareness and Reporting

The CBN emphasized that banks must not charge more than the prescribed fees. Customers are encouraged to report any violations, especially cases where banks force withdrawals under N20,000 despite the customer having enough funds. Complaints can be lodged directly with the CBN Consumer Protection Department.

As part of its strategy, the CBN also urged customers to prioritize using their own bank’s ATMs and explore alternative payment methods, such as mobile banking and POS transactions, to minimize transaction costs.

Arbiterz had earlier reported In January, CBN fined Zenith Bank and Eight Other Banks totaling N1.35 billion for not dispensing cash at ATMs. This action underscores the CBN’s determination to enforce regulatory compliance and ensure adequate cash availability during periods of high demand. With the removal of the N20,000 ATM withdrawal limit, the apex bank aims to enhance cash disbursement through ATMs, to minimize public inconvenience.