CBN orders banks to refund failed ATM transactions within 48 hours

The Central Bank of Nigeria (CBN) has issued a sweeping directive mandating Deposit Money Banks and different fiscal institutions to refund customers for failed Automated Teller Machine (ATM) transactions wrong 48 hours, arsenic portion of a broader effort to fortify user extortion and reconstruct nationalist assurance successful the banking sector.

The directive is contained successful a recently released draught papers titled “Exposure of the Draft Guidelines connected the Operations of Automated Teller Machines successful Nigeria,” made nationalist connected Saturday.

Signed by Musa I. Jimoh, Director of the Payments System Policy Department, the papers was circulated to banks, outgo work providers, paper schemes, and autarkic ATM operators, inviting manufacture feedback by October 31, 2025.

Under the projected framework, failed “on-us” transactions—those carried retired by customers utilizing their ain bank’s ATM—must beryllium automatically reversed. In cases wherever method issues forestall instant reversal, banks are required to manually refund affected customers wrong 24 hours.

For “not-on-us” transactions involving different banks’ ATMs, refunds indispensable beryllium completed wrong 48 hours.

“Customers indispensable not beryllium made to endure for failed transactions caused by strategy errors oregon web failures,” the circular stressed.

The caller line besides requires banks and ATM operators to deploy precocious systems that automatically reverse failed oregon partial transactions, eliminating the request for customers to manually record complaints. Institutions holding lawsuit funds from failed disbursements indispensable reconcile and instrumentality those balances immediately.

According to the apex bank, the caller argumentation addresses persistent complaints astir dilatory refunds, mediocre work quality, and increasing vexation among customers. It besides aims to modernise Nigeria’s outgo infrastructure and align section banking practices with planetary standards.

The guidelines volition besides restructure ATM deployment and absorption nationwide. Banks and paper issuers indispensable present supply astatine slightest 1 ATM for each 5,000 progressive cards, with implementation targets acceptable astatine 30% by 2026, 60% by 2027, and afloat compliance by 2028.

Any caller installation, relocation, oregon deactivation of ATMs indispensable person anterior support from the CBN.

To heighten information and idiosyncratic experience, ATMs are required to diagnostic anti-skimming technology, CCTV surveillance, and beryllium installed successful well-lit oregon enclosed areas. Machines indispensable besides comply with Payment Card Industry Data Security Standards, support elaborate audit logs, and show functional helpdesk interaction information.

At slightest 2% of ATMs indispensable see tactile features to assistance visually impaired users.

Furthermore, ATMs indispensable dispense currency earlier returning cards, let escaped PIN changes, contented receipts for each transactions but equilibrium inquiries, show wide transaction fees and lone dispense cleanable banknotes. Backup powerfulness systems indispensable besides beryllium installed to forestall downtime.

The caller rules headdress downtime astatine 72 consecutive hours, aft which operators indispensable publically disclose the crushed for the outage and supply an expected restoration timeline.

The CBN said compliance volition beryllium enforced done regular audits, carnal inspections, and monthly reporting by ATM operators detailing deployments and locations. Institutions that neglect to conscionable the caller standards volition look sanctions, though the circular did not specify penalties.

Explaining the rationale down the overhaul, the apex slope noted that the determination was driven by increasing reports of failed transactions, cybercrime, and deteriorating work quality, adding that “the extremity is to physique a payments strategy that works seamlessly for everyone, municipality and agrarian users alike.”

Stakeholders person been invited to taxable comments and recommendations earlier the last mentation of the guidelines is adopted, with implementation expected earlier the extremity of the year.

The station CBN orders banks to refund failed ATM transactions wrong 48 hours appeared archetypal connected Vanguard News.