Four commercials banks were in 2015 sanctioned for non-reversal of ATM cash dispense error within the specified 48 hour timeframe given by the Central Bank of Nigeria, CBN.
However, Nigerian banks in the past year paid out almost N400 million as cashback on the use of point of sale terminals.
CBN Assistant Director, Payment Policy and Oversight, Banking and Payment System, Shola Agboola, who spoke with newsmen on Monday, February 22, at a press conference organized by the Nigeria Inter Bank Settlement System (NIBSS), noted that following the issuance of a circular directing banks to install and automize auto reversal, the apex bank had found four banks wanting.
“When we carried out our oversight function on the banks to ensure at they have done what they were asked to do, four banks were penalized and sanctions last year, he stated adding that “a situation whereby customers will have a problem, they go and complain and the bank will not attend to them can no longer continue.”
The cashback was introduced in 2014 as an incentive for customers to use their cards for payments and to drive the usage of PoS, customers are paid back 40 per cent of the 1.25 per cent that merchants are charged on POS usage.