The House of Representatives, on Tuesday, mandated the Central Bank of Nigeria to restrain commercial banks from holding reversed funds of customers beyond the timeline stipulated by the apex bank.
The resolution of the House followed the adoption of a motion titled, โNeed to restrain commercial banks from holding funds reversal beyond the date prescribed by the Central Bank of Nigeria,โ moved by a member representing Ikono/Ini Federal Constituency, Akwa Ibom State, Emmanuel Ukpong-Udo.
The lawmaker recalled that on June 8, 2020, the CBN, in a statement announced timelines for reversals and resolution of refund complaints, including failed โOn-Usโ automated teller machine transactions (when customers use their cards on their bankโs ATMs) โShall be instantly reversed from the current timeline of three days.โ
He also noted that โWhere instant reversal fails due to any technical issue or system glitch, the timeline for manual reversal shall not exceed 24 hours; refunds for failed โNot-on-USโ ATM transactions (where customers use their cards on other banksโ ATM) shall not exceed 4 per cent hours from the current 3-5 days.
โResolution of disputed/failed POS or web transactions shall be concluded within 72 hours from the current five days,โ stressing that โAll banks are directed to resolve the backlog of all ATM, POS, and web customer refunds within two weeks starting June 8, 2020.โ
Leading the debate, the lawmaker said, โThe House is worried that Nigeriaโs financial sector is facing serious concerns due to persistent complaints of failed customer transactions, with over 69 per cent of complaints in July 2023 encompassing failed transactions
โCognizant of the rapid increase in numbers of failed banks and the magnitude of the problem which has reached an unprecedented level and alarmed that the high rate of failed bank transactions is causing a decrease in business investments and lending across the country,โ the House urged the CBN to direct banks to work on their systems in mitigating failed transactions without the customerโs prompting.”
It also urged the apex bank to direct banks โTo reverse customersโ funds within the stipulated periods whether or not the customers lodge complaints.โ
Consequently, the House mandated the committees on Banking Regulations, Banking and other Ancillary Institutions, and Digital and Electronic Banking โTo 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.โ