The Central Bank of Nigeria (CBN) is set to introduce a new regulation that will ensure speedy refund of failed transactions carried out at the Automated Teller Machines (ATMs).

According to a circular signed by the director of the Payments System Policy Department of the apex bank, Musa Jimoh, stakeholders are expected to turn in their observations before October 31, 2015.

The CBN said the new regulation is designed to strengthen consumer protection, improve service reliability and ensure greater accountability in the financial system.

The proposed regulation requires banks to reverse failed transactions carried out in their accounts to be effective immediately.

Under the new regulation, if instant reversal is not possible due to technical hitches or system glitches, the transaction must be manually corrected within 24 hours.

It noted that where customers use another bank’s ATM, the maximum refund window has been set at 48 hours.

ATM acquirers are also required to put in place mechanisms that automatically initiate refunds without waiting for customer complaints or prompts from the issuing bank.

Also, customers must reconcile and refund all funds in their possession that belong to customers as a result of failed or partial cash disbursements.

The CBN stated that this measure is aimed at improving consumer confidence in the banking system and reducing the frustration often associated with delayed transaction reversals.

While the refund directive is part of a wider overhaul of Nigeria’s ATM regulatory framework, the CBN said this regulation replaces earlier provisions in the 2020 electronic payments guidelines.

It explained that the review was necessary in light of the rapid evolution of the payment ecosystem, rising cyber threats, and the push to expand financial inclusion.

The new rules require banks and card issuers to deploy a minimum of one ATM for every 5,000 cards issued.

This target will be phased in over three years, with 30 per cent compliance expected in 2026, 60 per cent in 2027 and full compliance by 2028.

It explained that any deployment, redeployment, or decommissioning of ATMs will require prior approval from the apex bank.

Issued cards are now expected to be fully compliant with Payment Card Industry data security standards, maintain detailed audit logs for dispute resolution, and provide clear card orientation symbols.

The new regulation proposes that at least two per cent of all ATMs deployed by each bank must be equipped with tactile symbols to serve visually impaired customers.

Equally, ATMs must be sited in secure, well-lit areas, fitted with anti-skimming devices, and backed by surveillance cameras that monitor transactions without recording keystrokes.

Under the new rule, ATMs must dispense cash before releasing cards to reduce the risk of abandoned cash, provide receipts when requested, allow free personal identification number (PIN) changes, and ensure that only fit banknotes are dispensed.