CBN Introduces New ATM Deployment Ratio, Sets 2028 Deadline for Full Compliance

The Central Bank of Nigeria (CBN) has unveiled new minimum standards governing the deployment, operation, maintenance, and security of Automated Teller Machines (ATMs) across the country, marking a major shift in how banks and financial institutions manage cash access.

In a circular titled “Exposure of the Draft Guidelines on the Operations of Automated Teller Machines (ATMs) in Nigeria”, released on Wednesday, the apex bank said the new framework replaces all previous ATM regulations.

1 ATM for Every 5,000 Cards

Under the revised rules, all card-issuing financial institutions must deploy at least one ATM for every 5,000 payment cards issued. The CBN set a phased implementation timeline, requiring:

• 30% compliance by 2026

• 100% compliance by 2028

The policy is aimed at reducing ATM congestion, improving cash availability, and enhancing customer experience nationwide.

Stricter Rules on ATM Location and Approval

The CBN stressed that ATMs must be sited in locations that guarantee user safety, transaction confidentiality, and physical security. Machines should not be installed outside buildings unless they are firmly bolted to the ground.

Additionally, all ATM deployment, redeployment, or decommissioning must receive prior written approval from the CBN.

Independent ATM Deployers (IADs) are also required to obtain approval and meet licensing conditions, including proof of a formal partnership with a bank responsible for cash provisioning.

Faster Refunds for Failed Transactions

To address frequent customer complaints, the new guidelines impose stricter refund timelines:

• On-us transactions (same bank ATM): Failed transactions must be reversed instantly. If technical issues occur, manual reversals must not exceed 24 hours.

• Not-on-us transactions (another bank’s ATM): Refunds must be completed within 48 hours.

The CBN also mandated automatic refunds for cash non-dispense errors, without requiring customer complaints or intervention from issuing banks.

Read also CBN Tackles End-Year Cash Scarcity with Stronger Regulation

Enhanced Security and Anti-Fraud Measures

All ATMs must now be equipped with surveillance cameras that capture activities such as card insertion and cash withdrawal, but must not record customers’ PIN entries.

Other mandatory security measures include:

• Installation of anti-skimming devices to combat fraud

• Regular change of ATM keys (at least once a year), with no key reused across multiple machines

• Free PIN change options for customers

• Full compliance with Payment Card Industry Data Security Standards (PCI DSS)

Operations, Maintenance, and Cash Availability

The CBN capped ATM technical downtime at 72 consecutive hours, except in exceptional circumstances where customers must be duly informed.

Banks are required to ensure constant cash availability at all ATMs. Where non-bank institutions are involved, the partner bank remains solely responsible for cash provisioning.

ATMs must also clearly display helpdesk contact details, applicable charges, and fees, and issue receipts for all transactions except balance enquiries.

Monitoring, Reporting, and Penalties

To ensure strict compliance, the CBN will conduct periodic audits and onsite inspections. Financial institutions must submit monthly reports detailing new ATM deployments no later than the 5th day of the following month.

The apex bank warned that sanctions and penalties will be imposed on institutions that fail to comply with the new guidelines.

With these reforms, the CBN aims to strengthen Nigeria’s payment infrastructure, improve consumer confidence, and ensure safer, more reliable access to cash nationwide.