The Central Bank of Nigeria has ordered Deposit Money Banks to refund money trapped in their Automated Teller Machines on or before July 31 or face appropriate penalties.

The directive, contained in a circular issued by the Director of Banking and Payment System, CBN, Mr. Dipo Fatokun, included money trapped in the ATMs as a result of non-dispensing or partial dispensing errors.

The circular, dated June 11, was posted on the central bank’s website on Monday.

In order to fast-track the process of refunding monies trapped in ATMs, the CBN directed that acquiring banks should initiate the refund or resolution process, even without the prompting of the ATM issuing banks.

This, it said, was in line with the Section 9.1 of the Guidelines for Card Issuance and Usage in Nigeria.

The circular read, “The attention of the Central Bank of Nigeria has been drawn to the fact that Deposit Money Banks have not been refunding their customers that have been short-changed by the ATMs’ partial dispensing error, while some with non-dispensing errors were also not refunded.

“This issue was brought to the notice of the chairmen of the Committee of Heads of E-Banking and Heads of Operations, at a meeting held on April 15, 2014, at which the card schemes and switches were present. The major outcome of the aforementioned meeting was that banks were directed to reconcile their accounts, with a view to returning such monies to their owners.

“You are by this circular directed to return all monies in your possession as a result of the ATMs non-dispensing or partial dispensing error, not later than July 31, 2014. Please note that appropriate sanction shall apply for non compliance.”