- CBN orders banks to refund failed ATM transactions within 48 hours.
- New rules mandate instant reversals and stricter ATM service standards.
- Reforms aim to boost trust and efficiency in Nigeria’s digital payment system.
The Central Bank of Nigeria (CBN) has issued a new directive mandating Deposit Money Banks and other financial institutions to refund customers within 48 hours for failed Automated Teller Machine (ATM) transactions.
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EKO HOT BLOG reports that the directive, contained in a draft guideline titled “Exposure of the Draft Guidelines on the Operations of Automated Teller Machines in Nigeria” and signed by the Director of Payments System Policy Department, Musa I. Jimoh, was released on Saturday. The apex bank called for stakeholder feedback by October 31, 2025.
According to the document, banks must process refunds for failed “on-us” transactions—those carried out on the customer’s own bank ATM—instantly, or within 24 hours if there are technical issues. For “not-on-us” transactions carried out on another bank’s ATM, refunds must be completed within 48 hours.
“Customers must not be made to suffer for failed transactions caused by system errors or network failures,” the circular stated.
The new framework also compels banks to deploy technology that automatically reverses failed transactions, ending the need for manual complaints. Furthermore, banks and card issuers must deploy at least one ATM for every 5,000 active cards by 2028, with phased compliance targets—30% by 2026 and 60% by 2027.
To improve safety and accessibility, all ATMs must be installed with anti-skimming devices, CCTV cameras, backup power, and tactile symbols for visually impaired users. They must also dispense cash before returning cards, display transaction fees, and issue receipts for all transactions except balance inquiries.
The CBN warned that non-compliance would attract sanctions after audits and regular inspections.
The apex bank said the reform aims to rebuild public trust, enhance user experience, and strengthen the integrity of Nigeria’s digital payment system.
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