Nigerians may soon experience faster resolution of failed ATM transactions as the Central Bank of Nigeria (CBN) has released a draft guideline mandating banks to refund customers within strict timelines.
Under the proposed framework, banks must complete refunds for failed interbank (not-on-us) ATM transactions within 48 hours, while failed transactions on the same bank’s machines (on-us) must be reversed instantly.
In cases where technical issues delay automatic reversals, manual refunds must be completed within 24 hours.
The directive, contained in a circular titled “Exposure of the Draft Guidelines on the Operations of Automated Teller Machines (ATMs) in Nigeria,” was signed by Musa Jimoh, Director of the Payments System Policy Department.
The CBN said the document, currently open for stakeholder and public review over a four-week period, aims to strengthen reliability, safety, and consumer confidence in the Nigerian payment ecosystem.
According to the apex bank, the guideline sets out new operational standards for ATM deployment and management, improves consumer protection, enhances access to ATM services nationwide, and aligns local practices with global best standards.
It applies to Deposit Money Banks, Independent ATM Deployers, Card Schemes, and Payment Service Providers.
The CBN also directed that ATM operators must ensure customer safety and transaction confidentiality.
Machines are required to have surveillance cameras that capture activities such as card insertion, transaction selection, and cash withdrawal—without recording keystrokes for privacy reasons.
Outdoor ATMs must be securely enclosed and bolted to prevent tampering or theft.
“All ATMs must guarantee the safety and confidentiality of users,” the circular stressed, warning that operators will be held responsible for negligence leading to security breaches.
The new rules also emphasise transparency in transaction fees.
All charges must be clearly displayed before completion, and receipts showing transaction details—such as amount, terminal ID, and time—must be issued for every transaction except balance inquiries.
Each ATM must prominently display a functional helpdesk contact, including a monitored phone line, for customer complaints.
To ensure reliability, the CBN set a 72-hour limit for ATM downtime. Machines out of service beyond that period must display a notice explaining the reason.
Operators are also required to ensure constant cash availability, load only fit currency notes, and deploy online monitoring systems to track cash levels and detect failed transactions.
One of the most notable provisions is the requirement for automatic refunds.
The CBN directed that ATM acquirers must have systems capable of initiating refunds for failed or partial cash dispenses automatically—without waiting for customers to lodge complaints.
“Customers must not be made to suffer for failed transactions caused by system or network errors,” the Bank said.
The guideline also strengthens ATM security measures. Encryption keys must be changed at least once a year, and the same key cannot be used across multiple machines.
ATMs will now be configured to dispense cash before returning the card to reduce incidents of customers forgetting their cash or cards.
The cash-retract function must be disabled and the adjustment clearly displayed on the machine screen.
Other requirements include installing anti-skimming devices to prevent card fraud, providing paper disposal bins at ATM locations, and maintaining backup power systems for uninterrupted operation.
ATMs must also allow free PIN changes, while deployers are to conduct regular maintenance checks and ensure both the machines and the cash they hold are insured.
Operators must maintain a national register of all their ATMs, listing the location, identification, and serial number of each unit.
“ATM operators must take full responsibility for the safety, efficiency, and continuous functionality of their machines,” the circular stated, adding that these rules will promote accountability and improve service delivery.
The CBN explained that the draft guideline responds to increasing customer complaints, frequent transaction failures, and declining ATM service quality.
The reforms, it said, are designed to improve user experience and restore public confidence in the banking system.
“The goal is to build a payment system that works seamlessly for everyone—urban and rural users alike,” the Bank noted.
The apex bank invited banks, ATM operators, payment service providers, and members of the public to review the draft and submit feedback to the Director of the Payments System Policy Department.
Inputs received during the consultation period will be used to finalise a robust and consumer-friendly framework for ATM operations across Nigeria.
