CBN Orders Banks to Return Trapped ATM Funds

Central Bank of Nigeria (CBN) has directed all banks in the country to return all monies in their possession as a result of Automated Teller Machines’ (ATMs’) non-dispense or partial dispense errors to their customers before July 31.

The apex bank in a circular titled: “Non-refund of Monies to Customers Shortchanged by ATMs’ Non-Dispense or Partial Dispense Error,”  stated that the attention of the CBN had been drawn to the fact that banks have not been refunding their customers that were shortchanged by ATMs’ partial dispense error, while some with non-dispense error were also not refunded.

Mr. Dipo Fatokun, director, Banking and Payment System Department, CBN, who signed the circular, said that the issue, was brought to the notice of the Chairmen of the Committees of Heads of e-Banking and Heads of Operations, at a meeting held on April 15, 2014, at which the Card Schemes and Switches were present.

“The major outcome of the aforementioned meeting was that, banks were directed to reconcile their accounts with a view to returning such monies to their owners.

“Going forward, and in compliance with Section 9.1 of the Guidelines for Card Issuance and Usage in Nigeria, acquirers should initiate the resolution, even without the prompting of the issuing bank,” it added.