The CBN emphasized that banks are required to allow customers to withdraw up to N20,000 per transaction.
The Central Bank of Nigeria (CBN) has given clarification to its controversial N100 charge on withdrawals at another bank’s ATM (Not-On-Us Transactions).
It said the fee applies whether or not the withdrawal amount is up to N20,000.
In a Frequently Asked Questions (FAQs) document on the review of ATM transaction fees seen by Nairametrics, the CBN explained that the reason for applying the fee for every N20,000 withdrawal is to prevent customers from being compelled to break their withdrawals into smaller amounts.
“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 transaction.
“In other words, ATM transactions will incur a base fee of N100 per transaction. It is also important to note that a tiered fee structure will apply for transactions exceeding N20,000, with an additional N100 charged for each subsequent withdrawal of N20,000 or portion thereof,” the document explains.
The CBN emphasized that banks are required to allow customers to withdraw up to N20,000 per transaction. “Any bank that compels a customer with sufficient funds in 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,” the CBN warned.