Regulatory Alerts2009-04-08 | BOD/DIR/CIR/GEN/01/48Deployment of Automated Teller Machines (ATMs)
The Central Bank of Nigeria (CBN) has noticed the growth in Automated Teller Machine (ATM) usage and is committed to ensuring deployment aligns with global best practices. However, the CBN has observed banks competing with ATM consortium (ATMC) by deploying ATMs at public places such as airports and hotel lobbies. This will soon congest these spaces. Henceforth, banks are directed to restrict their ATM deployment to their premises and re-deploy existing ones in public spaces to their facilities by June 30th, 2009. In addition, the CBN plans to license an additional ATM consortium, resulting in a total of two, who will be solely responsible for deploying ATMs at public places.
09-61638445 09-61638455 (Fax) CENTRAL BANK OF NIGERIA Business Central Area District P.M.B. 0187 Garki, Abuja April 7, 2009 BOD/DIR/CIR/GEN/01/48 TO: ALL DEPOSIT MONEY BANKS
Deployment Of Automated Teller Machines
The Central Bank of Nigeria has observed with satisfaction the growth in the adoption of the Automated Teller Machines (ATMs) by Nigerians as one of the channels of e- The Bank is therefore committed to ensuring that the deployment and payment.
management of ATMs within the economy are in line with global best practices.
It would be recalled that one of the policies guiding the operations of ATM consortium (ATMC) is that the ATMC shall have the sole mandate to deploy ATMs at public places while the banks shall deploy ATMs only within their premises.
The CBN has observed with concern that the banks are competing with the ATMC in the deployment of ATMs in public places. A worrisome trend is the number of ATMs at the airports and hotel lobbies, which if unchecked would soon, congest these public places.
Against this backdrop, the CBN hereby directs that banks should forthwith restrict the deployment of the ATMs to their premises. Banks are further advised to re-deploy all existing ATMs in public places to their premises on or before June 30, 2009.
Furthermore, in line with the Bank's policy on shared payments infrastructure by the banking industry and the need to effectively respond to the rising demand for ATM services by the public, the CBN has decided to commence soon, the process of licensing an additional ATM consortium. This will bring the total number of ATM consortia in the economy to (2) two. The two (2) consortia shall be solely responsible for the deployment of ATMs in public places in line with this policy and best practices.
Thank you. James K. A. Olekah Director, Banking Operations Department