“CBN Ordered to Enforce Timely Reversals of Failed Transactions by Commercial Banks”

On Tuesday, the House of Representatives instructed the Central Bank of Nigeria to enforce regulations preventing commercial banks from holding customers’ reversed funds beyond the deadlines set by the apex bank.

This decision came after the House adopted a motion titled “Need to restrain commercial banks from holding funds reversal beyond the date prescribed by the Central Bank of Nigeria,” put forward by Mr. Emmanuel Ukpong-Udo, representing Ikono/Ini Federal Constituency, Akwa Ibom State.

Mr. Ukpong-Udo reminded the House of the CBN’s statement on June 8, 2020, which outlined timelines for fund reversals and resolving refund complaints. This included instant reversal for failed “On-Us” ATM transactions and a maximum timeline of 24 hours for manual reversals due to technical issues.

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He emphasized the importance of adhering to these timelines to address the persistent complaints regarding failed customer transactions.

Expressing concern over the significant number of failed transactions in Nigeria’s financial sector, the House highlighted its adverse impact on business investments and lending. Consequently, it urged the CBN to direct banks to improve their systems to reduce failed transactions without waiting for customer complaints.

Furthermore, the House mandated relevant committees to collaborate with the CBN and Nigeria Interbank Settlement System to address these issues, provide solutions, and report back within four weeks for further legislative action.