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CBN issues refund deadline on monies trapped in ATM transactions

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ABUJA – The Central Bank of Nigeria (CBN) yesterday issued a 46- day ultimatum for the banks to refund billions of naira trapped in ATM transactions to the affected customers.

The Central Bank of Nigeria ( CBN) warned on Monday that it would begin to sanction Deposit Money Banks (DMBs) which fail to refund to customers monies trapped in their Automated Teller Machines (ATM).

In a circular to the DMBs, the CBN directed the affected banks to return all such monies in their possession, latest by July 31, 2014 or face sanctions.

It would be recalled that the CBN last month 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.

The directives were contained in a 14-page ‘Guidelines for card issuance and usage in Nigeria’ released by the CBN Banking and Payment System Department.

“All debit entries arising from failed transactions attributable to system-related issues must be auto-reversed. Where auto reversal is not feasible, manual reversal must be carried out within 24 hours,” it noted in that circular.

But the apex bank in the new circular, noted that despite the earlier directories, its attention had been drawn to the fact some DMBs 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.

In the circular, Dayo Fatokun, CBN’s Director, Banking and Payments Systems Department said the issue was brought to the notice of heads eBanking, as well as heads of operations at a meeting held on April 15, which had the Card Schemes and Switches present.

BusinessDay had reported on March 28 that several billions of naira was caught up in failed Automated Teller Machine (ATM) transactions across the more than 5,500 branches of Nigeria’s 25 deposit money banks nationwide.

This is causing pain and frustration to many of the country’s 25 million bank customers. The situation arises mostly in cases of cross-bank ATM transactions, with funds of customers trapped due to failed transactions .

The typical scenario is that a customer of bank ‘A’ finds that the nearest ATM to him is that of bank ‘B’. In an attempt to conduct a withdrawal, the customer’s account gets debited without the ATM actually paying. This is usually due to faulty ATM machines or connectivity problems with the switching company.

When the customer goes into the bank that owns the ATM, he or she is asked to go back to the issuing (his own) bank to file a formal complaint. Following the initial interface, the customer is sent back and forth by the affected banks, over and over again for an interminable period.

In many cases, the customer becomes weary and gives up the chase, waiting for an internal solution that takes too long, or never comes at all. This leaves billions of naira in stranded ATM transactions piled up in the banks.

Analysts say banks’ capacity to handle public communications is often questionable. Many customers leave the banking halls feeling short-changed, which has negative impact on the brand, not knowing that it is just a case of poor co-ordination by the banks.

Seeking a way out of this hazard, many ATM users search out their own bank’s ATMs, no matter how far away these may be, because cases of failed transactions, when they occur on a customer’s bank ATM, are usually resolved within 24 hours. Other bank customers still conduct cross-bank ATM transactions but have resorted to collecting the intended sums in bits to avoid huge losses, in case of failed transactions. This, however, leads to time wasting, long queues, greater wear on the ATM machines and higher risk of failed transactions, as explained in the theory of probability and chance.

Many bank customers are also losing confidence in electronic payment systems as a result of slow and inefficient dispute resolution when issues relating to faulty ATM transactions arise.

– BUSINESS DAY

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Banking

Millions of customers still stranded worldwide 24 hours after GT Bank online operations suffered attacks

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GTCO Acquires Funds Management, Pension Firms

By Yemie ADEOYE

GT Bank, one of Nigeria’s leading banks, with operations across Africa and the United kingdom, and with an asset base of about US$3.11 trillion is under a cyber attack which has left millions of its customers across the world stranded in the last 24 hours.

The bank which was renowned for its seamless online operations at inception has suffered dwindling online efficiency in recent years and this current attack didn’t come as a surprise to many of its numerous customers. However, it is becoming worrisome that over 24 hours after its online operations went down, the bank has not been able to arrest the situation and restore its online services.

Stranded GT Bank customers outside the banks premises

Several customers of the bank took to their X (formerly known as twitter) handles to express their frustrations at the bank, as several of the customers in the diaspora are unable to access their accounts and carry on with their transactions.  A customer , Jeff55 who lamented on his X handle about the development, stated that it is a thing of shock that a bank of this size couldn’t afford to have the necessary tools and experts to ensure a full protection of its online operations in this age and time.

Another customer Dimma stated that while Cybersecurity training may seem tedious, the recent #GTBank hack is a stark reminder that everyone is just a click away from a devastating attack.

Several media organisations had reported that hackers have stolen GT Bank website, and intercepted customers Data in massive phishing operation.

At the time of filing this report, Biztellers.com.ng checks on the banks website shows that it is still down and unaccessible, and neither GT Bank media and communications unit nor any of its agencies or surrogates have commented officially on the development.

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Banking

Tinubu commends increased crude production to 1.61 mbpd

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Says output surge buoyed by reforms he announced in May 2024 to address gaps in PIA

President Bola Ahmed Tinubu on Sunday declared a resurgence in the oil & gas industry, commending the increased crude production to 1.6 million barrels per day.

The president, who said this in a national broadcast, maintained that the resurgence was buoyed by the reforms he announced in May 2024 to address the gaps in the Petroleum Industry Act (PIA).

Nigeria’s crude oil output got a boost to 1.61 million barrels per day in July 2024 through the president’s directive and the industry leadership provided by the Nigerian National Petroleum Company Limited (NNPCL).

Acknowledging what he called a resurgence of the once-declining oil and gas industry in his Sunday-morning broadcast to the nation, President Tinubu said that oil investors are coming back to Nigeria.

He said; “Our once-declining oil and gas industry is experiencing a resurgence on the back of the reforms I announced in May 2024 to address the gaps in the Petroleum Industry Act. Last month, we increased our oil production to 1.61 million barrels per day, and our gas assets are receiving the attention they deserve. Investors are coming back, and we have already seen two Foreign Direct Investments signed of over half a billion dollars since then.

Read Also : BREAKING: Sell Crude To Dangote Refinery In Naira – Tinubu To NNPC LtdRead Also : BREAKING: Sell Crude To Dangote Refinery In Naira – Tinubu To NNPC Ltd

“Fellow Nigerians, we are a country blessed with both oil and gas resources, but we met a country that had been dependent solely on oil-based petrol, neglecting its gas resources to power the economy.

We were also using our hard-earned foreign exchange to pay for and subsidise its use. To address this, we immediately launched our Compressed Natural Gas Initiative (CNG) to power our transportation economy and bring costs down.

This will save over two trillion Naira a month, being used to import PMS and AGO and free up our resources for more investment in healthcare and education.

“To this end, we will be distributing a million kits of extremely low or no cost to commercial vehicles that transport people and goods and who currently consume 80% of the imported PMS and AGO.

“We have started the distribution of conversion kits and the setting up of conversion centres across the country in conjunction with the private sector. We believe that this CNG initiative will reduce transportation costs by approximately 60 per cent and help to curb inflation.”

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Banking

FBN Holdings On Course For AGM

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Plans are in top gear for the 11th Annual General Meeting (AGM) of the FBN Holdings Plc.

The management made this disclosure in a notice it filed with the Nigerian Exchange Limited (NGX) on Thursday, where it averred that it has not been served with any court order against the proposed AGM.

According to notice, which was signed by the acting Company Secretary, Adewale Arogundade, FBN Holding said, “The attention of FBN Holdings Plc (the Company) has been drawn to recent media reports purporting that the Company has received a Court Order stopping it from holding the Annual General Meeting (AGM) scheduled for August 15, 2023.

“We confirm that this assertion is a false narrative as the Company has, as at the date hereof, not been served with any court order to stop the forthcoming AGM.

“Suffice to mention that the AGM is a statutory meeting of Shareholders that must be held in accordance with the law, further to which the Company will notify the regulators and the public as appropriate if there is any lawful order to restrain the Company from conducting same.

“We hereby assure our esteemed Shareholders that the AGM shall hold on August 15, 2023, as planned and we look forward to their attendance and active participation at the meeting.”

However, court orders published in national dailies showed that the Federal High Court in Lagos had issued an order against the financial institution, barring it from holding its 11th AGM.

The order was entered pursuant to a petition by Olusegun Onagoruwa, in suit No: FHC/L/CP/1271/2022. It was addressed to the bank and some other bank officials.

It read, “Take notice that unless you obey the directives in the judicial order contained in the order made on July 15, 2022, by the Federal High Court, Lagos, by refraining from proceeding with the 11th Annual General Meeting of FBN Holdings Limited proposed for August 15, 2023, from seeking approval to issue or raise share capital in any manner whatsoever, from appointing or confirming the appointment of new directors, or in any other manner taking any step towards implementing, actualising enforcing resolution of the 10th Annual General Meeting of FBN Holdings Plc held on June 20, 2022, or in any other manner overreaching, disobeying or undermining the said order of a court, you will be guilty of contempt of court and you will be liable to be committed to prison and to there imprisoned.”

Biztellers brought you a report that a segment of shareholders had staged a protest at the headquarters of the bank on Monday, calling for the AGM to be held, as well as soliciting regulatory interventions.

It is expected that at the AGM, FHN Holdings is poised to breathe life into plans to seek shareholders’ approval to raise N150bn fresh capital via a rights issue and elect new directors including billionaire, Femi Otedola and Samson Ariyibi among other resolutions.

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