The House of Representatives has charged the Central Bank of Nigeria to prevent commercial banks operating in the country from withholding reversed funds of cu FB instomers beyond the stipulated by the aoex bank.
The charged was made on Tuesday, following the adoption of the motion titled, “Need to restrain commercial banks from holding funds reversal beyond the date prescribed by the Central Bank of Nigeria,” moved by member representing Ikono/Ini Federal Constituency, Akwa Ibom State, Mr Emmanuel Ukpong-Udo.
Speaking, ukpong recalled that on June 8, 2020, the CBN in a statement announced timelines for reversals and resolution of refund complaints including Failed “On-Us” automated teller machines transactions (when customers use their cards on their bank’s ATMs) “Shall be instantly reversed from the current timeline of three days.”
“Where instant reversal fails due to any technical issue or system glitch, the timeline for manual reversal shall not exceed 24 hours; refunds for failed “Not-on-US” ATM transactions (where customers use their cards on other banks’ ATM) shall not exceed 4 per cent hours from the current 3-5 days.
“Resolution of disputed/ ailed POS or web transactions shall be concluded within 72 hours from the current five days,” stressing that “All banks are directed to resolve the backlog of all ATM, POS, and web customer refunds within two weeks starting June 8, 2020,” he noted.
He further stated the house’s concern over the poor state of the country’s financial sector due to due to persistent complaints of failed customer transactions, with over 69 per cent of complaints in July 2023 encompassing failed transactions.
The reps implored the apex bank to direct banks to work on their systems in mitigating failed transactions without the customer’s prompting, adding that banks should be mandated “to reverse customers’ funds within the stipulated periods whether or not the customers lodge complaints.”
Consequently, the House mandated the Committees on Banking Regulations, Banking and other Ancillary Institutions, and Digital and Electronic Banking “To liaise with the apex bank and Nigeria Interbank Settlement System to look into the issues, provide solutions and report back to the House within four weeks for future legislative action.”
