Nigerian Bank Customers Support CBN’s 24–48-hour ATM Refund Policy for Failed Transactions

• BCAN has endorsed the CBN's proposal requiring banks to refund customers for failed ATM transactions within 24–48 hours
• BCAN President, Uju Ogubunka, praised the move as customer-friendly and also supported new rules limiting ATM downtime to 72 hours
• Ogubunka further urged the CBN to address excessive bank charges and ensure banks comply with existing fee guidelines

Legit.ng journalist Victor Enengedi has over a decade's experience covering Energy, MSMEs, Technology, Banking and the Economy.

The Bank Customers Association of Nigeria (BCAN) has expressed strong support for the Central Bank of Nigeria’s (CBN) draft guidelines aimed at improving Automated Teller Machine (ATM) operations.

The proposed regulations include a rule mandating a 24–48-hour period for refunds in cases of failed transactions.

Dr. Uju Ogubunka, president of BCAN, shared his views in an exclusive interview with The PUNCH, highlighting that a faster refund timeline would significantly benefit customers, particularly when funds are urgently needed.

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He emphasized that a 24-hour window is ideal, suggesting that even the 48-hour limit might be excessive for some banks.

He said:

"So, 24 hours is ideal, if you ask me, and 48 hours is even too much for other banks. But again, we can give up some kind of benefit of doubt to another bank and say, ‘Okay, if my own bank is taking 24 hours, let’s give them 48 or 36."

He added that no customer would want their money held up for too long, particularly when they urgently need it for something important.

The proposed rules also address transaction processing, reconciliation, and the security features necessary for ATM operations.

For "on-us" transactions, the guideline mandates instant refunds, while "not-on-us" transactions should be processed within 48 hours.

The CBN also advocates for enhanced security measures such as camera surveillance, anti-skimming devices, and reliable maintenance to ensure continuous service.

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ATM Downtime Regulation: A Step Forward

In addition to faster refunds, the draft guidelines introduce new standards for ATM downtime.

The CBN mandates that ATMs be repaired within 72 hours of a technical fault. If the repair timeline exceeds this period, customers must be informed about the situation.

Ogubunka expressed support for the 72-hour limit, though he pointed out that the root cause of downtime might not always be immediately clear.

He said:

"But it is a good start. That will make banks face the issue squarely, instead of abandoning the ATM when it gets bad."

He highlighted the need for more technicians to handle repairs promptly, as current delays can stretch from weeks to months.

Ogubunka believes that a regulatory framework is necessary to pressure banks into improving their ATM service and maintenance practices.

BCAN's Advocacy for Fair Bank Charges

Beyond ATM operations, BCAN has also called on the CBN to intervene in the issue of excessive bank charges.

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Ogubunka emphasised that banks should operate within established guidelines for fees, which already exist to prevent unjustifiable charges.

With some fintech companies offering zero transfer fees, Ogubunka believes banks should at least adhere to the approved charge limits.

He argued that even if banks don’t offer free services, they should refrain from exceeding the prescribed fees. This, he says, would foster customer loyalty and ensure fairness in banking practices.

Banks resume foreign transactions on naira cards

Meanwhile, Legit.ng earlier reported that several Nigerian banks have resumed foreign transaction services on their naira debit cards after nearly three years of suspension.

The move marks a major relief for customers who can now make international payments and purchases using their regular naira cards.

According to reports, this development follows improved liquidity and stability in Nigeria’s foreign exchange (FX) market, which has encouraged banks to reintroduce cross-border transaction capabilities.

Source: Legit.ng