CBN Unveils New ATM Guidelines: Instant Refunds, Tougher Security, and Stricter Compliance Rules

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The Central Bank of Nigeria (CBN) has released a new set of draft guidelines for Automated Teller Machine (ATM) operations, introducing sweeping changes aimed at improving service quality, security, and consumer protection across the country’s banking sector.

According to the draft document, the new rules—set to replace previous ATM regulations—mandate that card issuers must deploy at least one ATM for every 5,000 issued cards by 2028, with an initial 30 percent rollout expected by 2026.

Each deployment will require prior approval from the CBN, and all ATMs must be installed in secure and accessible locations to ensure better public safety and usability. The CBN is also prioritising faster customer refunds for failed transactions. Under the new framework, banks must ensure instant reversals for failed “on-us” transactions, which occur within the same bank.

Manual reversals must be completed within 24 hours, while “not-on-us” transactions between different banks must be refunded within 48 hours. Security remains a major focus of the new guidelines. All ATMs must now be fitted with surveillance cameras that do not record customer keystrokes, anti-skimming devices to prevent card data theft, and must comply with the Payment Card Industry Data Security Standard (PCI DSS).

Operators are also required to change encryption keys every year to maintain strong data protection. To improve efficiency, the apex bank has directed that ATM downtime must not exceed 72 hours and that machines must always be adequately funded. All transaction fees are to be clearly displayed, and receipts must be issued for every transaction except balance inquiries. The CBN will closely monitor compliance through regular audits, while banks are expected to submit monthly operational reports by the fifth day of each month. Institutions that fail to meet the new requirements may face penalties or other regulatory actions. According to the CBN, the new draft guideline is part of ongoing efforts to enhance financial inclusion, strengthen consumer confidence, and ensure that Nigeria’s banking system delivers reliable and secure electronic payment services nationwide. The public and industry stakeholders have been invited to review the draft and submit feedback before the policy is finalised and enforced.