CBN Plans New Debit Card Rules, Sets Fresh ATM Deployment Standards For Financial Brands To Ease Cash Access

The Central Bank of Nigeria (CBN) has unveiled plans to introduce new regulatory measures in the financial system aimed at reducing ATM congestion, improving cash availability, and strengthening public confidence in the country’s electronic payment system.

he announcement was made by the CBN Governor, Yemi Cardoso, through his Special Adviser, Fatai Karim, at the 2026 Committee of Heads of Bank Operations Conference, held recently in Abuja.

The apex bank said the proposed policy will regulate debit card issuance in relation to banks’ ATM infrastructure, ensuring that financial institutions do not issue more cards than their deployed machines can effectively support.

According to the CBN, the initiative is designed to address persistent challenges such as frequent ATM downtime, cash shortages, and long queues, which continue to frustrate customers despite the rapid growth of digital banking.

“Very soon, the Central Bank will be coming up with another policy to sanitise and improve the situation, particularly around how many cards banks issue relative to the number of ATMs they support. When cash access fails, whether due to prolonged ATM outages or uneven distribution, the credibility of the entire payment system is weakened,” the bank said.

Karim disclosed that the CBN is currently engaging key industry stakeholders and expects the new policy to take effect within the next few months, possibly before the end of the second quarter of 2026.

In a related development, the CBN has also released new minimum standards for ATM deployment, operations, maintenance, and security, aimed at strengthening service delivery across the banking sector.

The guidelines, contained in a circular titled “Exposure of the Draft Guidelines on the Operations of Automated Teller Machines (ATMs) in Nigeria,” supersede previous regulations on ATM operations.

Under the new rules, all card issuers are required to deploy at least one ATM for every 5,000 payment cards issued.

The directive mandates full compliance within three years, with banks expected to achieve:

30 per cent compliance in 2026, progressive expansion in subsequent years, and 100 per cent compliance by 2028.

The CBN also directed that ATMs must be sited in locations that guarantee users’ safety and transaction confidentiality. Machines placed outside buildings must be firmly bolted to the ground.

In addition, banks and deployers must obtain prior written approval from the CBN before deploying, redeploying, or decommissioning ATMs.

Independent ATM Deployers (IADs) are also required to secure regulatory approval and meet licensing conditions, including evidence of partnership with a bank for cash provisioning.

To enhance the customer experience, the CBN established clear timelines for transaction reversals.

For on-us transactions (using a customer’s own bank ATM), failed transactions must be reversed instantly. Where technical issues prevent this, manual reversals must not exceed 24 hours.

For not-on-us transactions (using another bank’s ATM), refunds must be completed within 48 hours.

Other key provisions of the new directive include:

Automatic refunds for failed cash dispense errors without customer prompting, installation of surveillance cameras on all ATMs, excluding keypad recording, deployment of anti-skimming devices to prevent fraud, regular change of ATM keys at least once a year and free PIN change for customers.

Compliance with Payment Card Industry Data Security Standards (PCI DSS).

On operations, the CBN ruled that ATM technical downtime must not exceed 72 consecutive hours, and customers must be informed where delays are unavoidable.

Banks are also mandated to ensure constant cash availability at their ATMs, including those operated in partnership with non-bank institutions.

The guidelines further require banks and ATM deployers to display helpdesk contacts, charges, and fees clearly at ATM locations. Receipts must be issued for all transactions, except balance enquiries.

To ensure compliance, the CBN said it will conduct periodic audits and onsite inspections. Financial institutions are also required to submit monthly reports on ATM deployments and operations no later than the fifth day of the following month.

The apex bank warned that appropriate penalties will be imposed on institutions that fail to comply with the new standards.

The twin policies on debit card issuance and ATM deployment are expected to enhance reliability in cash access, reduce congestion, and improve service quality across Nigeria’s banking system.

The CBN noted that persistent ATM failures and cash shortages have continued to undermine confidence in electronic payment channels, even as digital transactions expand nationwide.

With the new measures, the regulator aims to restore trust in the payment system, ensure fair access to cash, and promote a more efficient and secure banking environment for customers and financial institutions alike.