By Tony Obiechina Abuja
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.
“These cameras must capture events such as card insertion, transaction selection, and cash withdrawal, while strictly avoiding the recording of customers’ keystrokes for privacy reasons. Where such cameras are installed, they must be concealed to prevent tampering or removal.
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“ATMs must be located in areas that guarantee user safety and transaction confidentiality. Those placed outside buildings must be securely bolted and surrounded by protective structures to prevent unauthorised removal.
” Additionally, ATMs must be equipped with anti-skimming devices to combat fraudulent activities, and network connections used in ATM transactions must ensure data confidentiality and integrity”.
According to the circular, to ensure continuous service delivery, ATM deployers are required to minimise ATM downtime. Any technical faults must be resolved within 72 consecutive hours, and if not, customers must be adequately informed of the reason for the outage.
” ATM terminals must also display functional help desk contact information, including at least one dedicated and constantly monitored telephone line for reporting faults.
Moreover, the guidelines also emphasised the importance of transparency in customer charges, adding that all fees and charges associated with ATM transactions must be fully disclosed, and receipts must be issued upon request for every transaction, excluding balance inquiries.
” These receipts must clearly show transaction details such as the amount withdrawn or deposited, the terminal ID, and the time and date of the transaction. Screen displays and printed receipts must also be legible”, the circular added.
