In a decisive move to safeguard customers’ access to their funds, the Central Bank of Nigeria (CBN) has issued a strong directive warning that any bank restricting withdrawals to amounts less than N20,000 per transaction will face sanctions.
The new rule, which takes effect on March 1, 2025, aims to address growing concerns around cash accessibility and inefficiencies within the banking sector, ensuring that Nigerians can freely withdraw up to N20,000 from their accounts without unnecessary barriers.
This development, outlined in a circular dated February 10, 2025, forms part of the CBN’s broader initiative to streamline banking services, improve financial inclusivity, and enhance the overall customer experience.
The apex bank’s intervention comes in response to mounting frustrations from account holders who have often found themselves restricted from withdrawing reasonable amounts, despite having sufficient funds in their accounts.
The directive also ties into the CBN’s revised framework for ATM transaction fees, which seeks to foster a more efficient banking system by incentivizing the expansion of ATM networks across the country. The updated policy encourages banks to deploy more ATMs, thus reducing long queues and enhancing customer convenience, particularly in rural areas where access to banking infrastructure remains limited.
In an effort to ensure transparency and clarity, the CBN also published a comprehensive FAQ document detailing the rationale behind the directive.
The document emphasizes the central bank’s dedication to ensuring that banking operations remain customer-focused, providing Nigerians with reliable and equitable access to their funds.
The CBN has underscored that the new measures are designed to prevent arbitrary restrictions and ensure that banking practices align with the needs and expectations of the Nigerian public.
By addressing this issue, the CBN aims to foster greater trust in the banking system while alleviating concerns about access to cash, particularly as digital banking and mobile money services continue to expand across the country.
With the introduction of these new regulations, the CBN is signaling its commitment to creating a more accessible and customer-oriented financial environment, where Nigerians can trust that their financial rights will be protected and respected.
This move is expected to significantly improve customer satisfaction, curbing the practice of limiting withdrawals, and driving banks to become more responsive to the evolving needs of their customers. It also highlights the CBN’s ongoing efforts to modernize and improve the Nigerian banking sector, ensuring that the system operates efficiently, transparently, and fairly for all Nigerians.
