The Central Bank of Nigeria (CBN) has introduced a new set of draft guidelines for Automated Teller Machine (ATM) operations, replacing the previous regulations.
New Deployment Rules for Banks and Card Issuers
Under the new draft, card issuers are required to deploy at least one ATM for every 5,000 payment cards in circulation by the year 2028. The implementation will begin with a 30 percent target in 2026.
The CBN also stressed that all ATM installations must receive prior approval and be positioned in secure, accessible locations to ensure safety and ease of use.
Refund Timeline for Failed Transactions
To enhance customer satisfaction, the CBN directed that failed “on-us” transactions—those carried out on a bank’s own ATMs—should be reversed instantly. However, in cases requiring manual intervention, the refund must be completed within 24 hours.
For “not-on-us” transactions—those made using another bank’s ATM—the refund timeline should not exceed 48 hours.
Enhanced Security Requirements
The new guidelines mandate all ATMs to have functioning surveillance cameras that do not record customers’ keystrokes. Each machine must also be equipped with anti-skimming devices to prevent fraud and card cloning.
In addition, all financial institutions are to change ATM encryption keys annually and comply with the Payment Card Industry Data Security Standard (PCI DSS) to maintain system integrity.
Operational Standards and Customer Transparency
ATMs are expected to have no more than 72 hours of downtime in any given period. Machines must also be well-stocked with cash to avoid service interruptions.
Furthermore, all ATMs should display transaction fees clearly before completion and issue receipts for every transaction except balance inquiries.
CBN Oversight and Penalties for Defaulters:
The CBN noted that it will conduct periodic audits to ensure strict compliance. Financial institutions are also required to submit monthly operational reports by the fifth day of each month.
Institutions that fail to comply with these new rules will face sanctions, the apex bank warned.
The CBN said the draft guidelines are open for stakeholder review before final approval. It emphasised that the reforms will modernise ATM usage, enhance financial inclusion, and strengthen consumer confidence in Nigeria’s banking system.
