The Central Bank of Nigeria (CBN) has issued a draft guideline on the operations of Automated Teller Machines (ATMs), mandating that banks refund customers for failed ATM transactions within a stipulated timeframe
Specifically, customers must be refunded for failed interbank (not-on-us) ATM transactions within 48 hours, while refunds for failed transactions on the same bank’s ATM (on-us) should be reversed instantly.
In the event that an instant reversal is not possible due to technical issues, a manual reversal must be completed within 24 hours.
The directive was contained in a circular entitled, ‘Exposure of the Draft Guidelines on the Operations of Automated Teller Machines (ATMs) in Nigeria,’ which was released to banks, other financial institutions, and payment service providers.
The circular, signed by Musa Jimoh, director of the Payments System Policy Department, is part of CBN’s efforts to strengthen the reliability and safety of the country’s payment systems.
The CBN stated that it is issuing the draft guidelines for public consultation and stakeholder feedback, in line with its mandate to promote a sound financial system and an efficient payments infrastructure. Stakeholders are expected to review and submit feedback within four weeks from the date of the circular’s release.
According to the apex bank, the key objectives of the draft guidelines include establishing minimum standards for ATM deployment, operations, and maintenance; enhancing consumer protection; improving access to ATM services in both urban and rural areas; and aligning ATM operations with global best practices and regulatory expectations.
The guidelines apply to a wide range of stakeholders, including Deposit Money Banks, Independent ATM Deployers, Card Schemes, Payment Service Providers, and the general banking public.
The draft guidelines lay out detailed operational requirements for ATM deployers, focusing heavily on consumer safety, transparency, fraud prevention, and service availability.
ATM deployers are required to ensure that every ATM is equipped with surveillance cameras that capture and record all activities around the machine.
