Refund customers within 48 hours for failed ATM transactions - CBN orders Banks
By Seun Ibiyemi
The Central Bank of Nigeria (CBN) has issued new draft guidelines on Automated Teller Machine (ATM) operations, directing banks to refund customers for failed transactions within a stipulated period to enhance transparency and consumer protection in the country’s financial system.
According to the circular titled “Exposure of the Draft Guidelines on the Operations of Automated Teller Machines (ATMs) in Nigeria,” and signed by Musa Jimoh, Director of the Payments System Policy Department, banks are required to refund customers for failed interbank (not-on-us) transactions within 48 hours, while failed same-bank (on-us) transactions must be reversed instantly.
Where immediate reversal is not possible due to technical reasons, a manual reversal must be completed within 24 hours, the CBN stated.
The apex bank said the guidelines are part of its broader efforts to improve the reliability, safety, and efficiency of Nigeria’s electronic payment systems.
The draft document has been released for public consultation, with stakeholders — including banks, payment service providers, and independent ATM deployers, invited to submit feedback within four weeks.
The CBN explained that the new policy seeks to set minimum standards for ATM deployment, enhance consumer confidence, and align operations with global best practices.
Under the draft framework, ATM operators are required to ensure machines are securely installed, equipped with surveillance cameras that capture activities around the terminal, and fitted with anti-skimming devices to prevent fraud.
Machines must also be placed in safe locations, maintained regularly, and replenished with cash to avoid service disruptions.
Additionally, the guidelines stipulate that ATM deployers must minimize downtime, ensure faults are fixed within 72 hours, and provide helpdesk contacts for customer support. All charges and fees must be clearly displayed, and receipts issued for every transaction except balance inquiries.
The CBN also mandated ATM acquirers to automatically process refunds for failed or partial cash dispenses without requiring customers to lodge complaints, stressing that the measure will help reduce disputes and improve trust in electronic banking.
The bank further directed operators to install backup power systems, change ATM encryption keys annually, and insure both machines and cash against theft or damage.
According to the CBN, these measures are aimed at reducing transaction failures, strengthening consumer protection, and improving access to efficient ATM services across urban and rural areas.