Refund Shortchanged ATM Customers Money Now..CBN Orders Banks

The Central Bank of Nigeria (CBN) has ordered Deposit Money Banks (DMB) to refund customers shortchanged by automated teller machines (ATMs’) partial dispense error and those with non-dispense error who have not been refunded.

The apex bank disclosed this on Monday in a circular entitled, “Non-Refund of Monies to Customers Shortchanged by ATMs’ Non-dispense or Partial Dispense Error,” signed by the Director, Banking and Payment System Department, Dipo Fatokun.

According to the CBN, the chairmen of the Committees of Heads of eBanking and Heads of Operations had brought the development to its notice at a meeting held on April 15, 2014, at which the Card Schemes and Switches were present.

The major outcome of the meeting, CBN noted, was a directive to banks to reconcile their accounts, with a view to returning such monies to their owners. It, however, warned that failure to comply with the order would draw appropriate sanctions from the apex bank.

It directed banks to return all the monies in their possession as a result of ATMs’ non-dispense or partial dispense error, not later than July 31, 2014, warning that 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 as appropriate sanctions shall apply for non-compliance.”
In another circular last week, the central bank reported that some banks had been overcharging customers on the Commission on Turnover (CoT) in the last few months, while others had also imposed illegal maintenance fees on the CoT-free accounts. The CBN gave all the DMBs 30 days to refund the excess charges or face severe penalties.

The circular entitled, “Implementation of the revised guide to bank charges -Commission on Turnover’ read: “It will be recalled that the CBN, in conjunction with the Bankers’ Committee, issued the revised guide to bank charges (the guide) on March 27, 2013. Section 3.1 of the guide provides that CoT is negotiable subject to maximum of N3 per mille in 2013; N2 per mille (that is N1000) in 2014; N1 per mille in 2015 and that no CoT will be charged from 2016.”

Information available to the CBN indicates that some banks are still charging the CoT at the rate of N3 per mille, which was the agreed rate for 2013.”

The circular further stated that, “the CBN hereby reiterates that the maximum CoT allowed by the guide for 2014 is N2 per mille.”