The Central Bank of Nigeria (CBN) has introduced comprehensive guidelines titled "Exposure of the Draft Guidelines on the Operations of Automated Teller Machines (ATMs) in Nigeria," replacing previous ATM regulations.
These directives aim to improve ATM accessibility, strengthen security, ensure operational efficiency, and enhance consumer protection across the country.
Below is a detailed overview of the major requirements and objectives.
1. ATM Deployment and Density Target: Card issuers must deploy at least one ATM per 5,000 payment cards issued, with full compliance required by 2028 (30% by 2026).
Location: ATMs must ensure user safety and transaction confidentiality. Outdoor ATMs must be bolted to the floor.
Approval: CBN's prior written approval is mandatory for ATM deployment, redeployment, or decommissioning.
Independent ATM Deployers (IADs): IADs must secure CBN approval and provide evidence of partnerships with banks for cash provisioning.
2. Failed Transactions and Refunds On-us Transactions: Failed transactions at a bank's own ATM must be reversed instantly. If technical issues prevent this, manual reversals must occur within 24 hours.
Not-on-us Transactions: Refunds for transactions at another bank's ATM must be completed within 48 hours.
Automatic Refunds: Acquirers must implement systems for immediate refunds on non-dispense errors without requiring customer or issuer prompts.
3. Security and Technology Security: ATMs must have cameras to record activities (e.g., card insertion, cash withdrawal) without capturing customers' keystrokes. Networks must ensure data confidentiality.
Anti-Skimming: ATMs must include anti-skimming devices to reduce fraud.
PIN/Keys: ATM keys must be changed annually, with unique keys for each ATM. Customers can change PINs free of charge.
Standards: Deployers and acquirers must comply with Payment Card Industry Data Security Standards (PCI DSS).
4. ATM Operations and Maintenance Downtime: ATM downtime must not exceed 72 consecutive hours, with customers informed if this is unavoidable.
Cash Provisioning: Banks partnering with non-bank deployers are solely responsible for ensuring cash availability at all times.
Information: ATMs must display helpdesk contacts, charges, and fees clearly.
Receipts: Receipts must be issued for all transactions except balance inquiries.
5. Compliance, Monitoring, and Reporting Monitoring: The CBN will conduct periodic audits and on-site checks to verify compliance, cash availability, and service quality.
Reporting: Institutions must submit monthly reports on new deployments by the 5th of the following month.
Penalties: Non-compliance will result in appropriate penalties.
Improve ATM density to enhance access to cash services.
Clarify and strengthen ATM security requirements.
Enhance consumer protection through faster refunds and robust security protocols.
These regulations reflect the CBN's commitment to modernizing Nigeria's financial infrastructure, ensuring reliable access to cash, and protecting consumers from fraud and operational inefficiencies.