ABUJA, Nigeria (VOICE OF NAIJA)-The Central Bank of Nigeria (CBN) has released new draft guidelines that require banks to provide instant refunds for failed Automated Teller Machine (ATM) transactions.
The rules, issued on October 9, 2025, aim to enhance consumer protection, improve service reliability, and promote greater accountability within the financial system.
The circular, signed by Director of the Payments System Policy Department, Musa I. Jimoh was addressed to banks, payment service providers, card schemes, and independent ATM deployers.
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Stakeholders have until October 31, 2025, to submit their feedback before the guidelines are finalised.
According to the draft framework, all on-us transactions where a customer uses their own bank’s ATM must be reversed instantly.
The CBN stated that if an immediate reversal cannot occur due to technical issues or system glitches, the transaction must be manually corrected within 24 hours.
For not-on-us transactions where a customer uses another bank’s ATM the maximum refund window has been fixed at 48 hours.
ATM acquirers are also required to establish systems that automatically trigger refunds without waiting for customer complaints or prompts from the issuing bank.
They must reconcile and return all funds in their possession resulting from failed or partial cash disbursements.
The CBN explained that this directive seeks to boost public confidence in electronic banking and reduce customer frustration over delayed refunds.
The refund policy forms part of a broader reform of Nigeria’s ATM regulatory framework, replacing provisions in the 2020 electronic payments guidelines.
The CBN noted that the update was necessary due to rapid changes in the payments landscape, increased cyber risks, and the drive to expand financial inclusion.
Under the new rules, banks and card issuers must deploy at least one ATM for every 5,000 cards issued, with the target to be achieved in phases 30% compliance by 2026, 60% by 2027, and full compliance by 2028.
Any deployment, relocation, or removal of ATMs will now require prior approval from the CBN.
ATMs must meet higher operational and safety standards.
They are to comply fully with Payment Card Industry Data Security Standards, maintain comprehensive audit logs for dispute resolution, and display clear card orientation symbols.
At least 2% of all ATMs deployed by each bank must include tactile features to assist visually impaired users.
Machines must be installed in secure, well-lit areas, equipped with anti-skimming technology, and supported by surveillance cameras that monitor transactions without capturing keystrokes.
Customer convenience also forms a key aspect of the new framework.
ATMs must dispense cash before releasing cards to reduce cases of abandoned funds, issue receipts upon request, allow free personal identification number (PIN) changes, and ensure that only clean, fit banknotes are dispensed.
Operators are further required to provide backup power, functional helpdesk lines, and on-screen prompts that give users adequate time to complete transactions.