CBN orders refund of customer funds trapped in ATMs

The Central Bank of Nigeria (CBN) has issued a 46-day ultimatum for banks to refund monies belonging to customers trapped in banks’ Automated Teller Machines (ATMs) to the affected customers.

It warned that it would begin to sanction banks that fail to effect the refunds.

The directives, contained in a 14-page document titled Guidelines for Card Issuance and Usage in Nigeria and released by the CBN Banking and Payment System Department, stipulates that the monies be refunded latest by July 31, 2014.

Last month, the apex bank gave banks 24 hours to reverse debit entries arising from failed transaction attributable to system-related issues and also destroy ATM cards trapped in their ATM terminals.

However, in the new circular, it noted that despite the earlier directories, some banks were still in the habit of not refunding their customers that have been short-changed by the ATMs’ partial or non-dispense error, even after customers’ complaints.

It expressed hope that the new directive will restore customer confidence in electronic payment systems and recouping  their monies in the case of occasional slow and inefficient services relating to faulty ATM transactions.

Also, CBN is planning to issue short-dated treasury bills on Wednesday, June 18, to raise N168.3 billion ($1.03 billion).

The CBN calendar shows that the bank plans to raise N33.26 billion in three-month bills, N65.02 billion in six-month, and 70 billion of one-year notes, using a reverse Dutch auction system.

In total, the federation is aiming at raising N936.9 billion ($5.76 billion) through treasury bills over the next three months as part of a debt issuance programme.