CBN Releases New Rule for Bank Charges: ATM, Debit Cards, Cash Transfers Affected
- The Central Bank's guide governs financial charges to enhance transparency and competition in Nigeria’s banking sector
- Customers can challenge improper charges and must be informed of applicable transaction fees before services are provided
- Certain banking services, like account reactivation and PIN resets, should incur no fees for customers
PAY ATTENTION: Find it fast with our new search feature at Legit.ng!
Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
Nigerian bank customers have a detailed rulebook governing what financial institutions can charge for various services, from electronic transfers and ATM withdrawals to loans, cards, cash transactions and account maintenance.
The Central Bank of Nigeria’s Guide to Charges by Banks, Other Financial and Non-Bank Financial Institutions, which took effect on January 1, 2020, was designed to promote transparency, flexibility and competition in the financial sector.
Source: Twitter
The guide applies to financial institutions licensed or regulated by the CBN and requires institutions to disclose applicable fees to customers at the point of a transaction.
How much can banks charge for transfers?
Under the guide, electronic fund transfers are subject to prescribed charges based on the amount being transferred.
Transfers below N5,000 attract a maximum charge of N10, while transactions between N5,001 and N50,000 attract N25. Transfers above N50,000 attract N50.
For RTGS transactions, the prescribed charge is N950.
The guide also places limits on bills-payment charges and says customers should be informed about applicable transaction fees.
ATM withdrawals and card fees
For customers withdrawing from their own bank’s ATM, the prescribed charge is zero.
However, using another bank’s ATM in Nigeria attracts a maximum charge of N35 after the third withdrawal within the same month for commercial banks.
The guide also provides for a N1,000 one-off fee for debit-card issuance, replacement and renewal.
For naira cards linked to current accounts, the maintenance fee is listed as no charge, while cards linked to savings accounts have a maximum quarterly maintenance fee of N50.
Some services should cost you nothing
The guide also identifies several services for which customers should not be charged.
These include account reactivation, account closure, mandatory monthly statements, PIN reset and PIN reissue in commercial banks.
Over-the-counter cash withdrawals below the CBN-approved cash withdrawal limit and intra-bank cash deposits or withdrawals within approved limits are also listed as having no charge.
Software OTPs are also listed as free, although customers may bear SMS delivery costs where the OTP is sent by text message.
Cash transactions carry bigger charges
The guide sets out charges under the cashless policy for transactions above specified thresholds.
For individuals, cash deposits above N500,000 attract a 2% charge, while cash withdrawals above the same threshold attract 3%.
For corporate customers, cash deposits above N3 million attract 3%, while cash withdrawals above N3 million attract 5%.
Customers have the right to challenge wrongful charges
One of the most important provisions gives customers protection against improper charges.
Financial institutions must disclose transaction fees, while receipts, alerts and confirmations for charges are expected to contain descriptions of the applicable fees.
Where a financial institution breaches the guide, the CBN prescribes a penalty of N2 million per infraction.
Where a bank wrongly imposes a charge on customers, the penalty applies to each affected customer. Continued failure to comply with a CBN directive can attract an additional N2 million daily penalty.
Banks must also log customer complaints in the Consumer Complaints Management System and provide customers with a unique reference code. Failure to do so attracts a N1 million penalty per breach.
What this means for bank customers
The guide makes one thing clear: not every fee appearing on a bank statement should automatically be accepted.
Customers are entitled to know what they are being charged for, while fees described as negotiable must be brought to their attention and mutually agreed through a verifiable means.
Source: UGC
The CBN also states that the guide is not exhaustive. Financial institutions introducing a new product, service or charge not covered by it are required to obtain prior written approval from the regulator.
For millions of Nigerians dealing with rising banking costs, understanding these rules can make the difference between accepting an unexplained deduction and knowing when a charge deserves to be challenged.
CBN unveils new cash rules for banks
Legit.ng earlier reported that the Central Bank of Nigeria (CBN) has overhauled its money-market rules, giving banks greater flexibility to access central bank funding while opening up some investment opportunities to individuals, companies and non-bank financial institutions.
The new rules, announced on Wednesday, August 12, 2026, take immediate effect and represent one of the biggest adjustments to the CBN’s money-market framework since tighter restrictions were introduced in 2022.
Under the new framework, banks can now access the CBN’s Standing Lending Facility (SLF) on the same day they trade in the Nigerian Foreign Exchange Market. They can also use the facility on days they participate in primary auctions of government securities.
Source: Legit.ng
