Reps urge CBN to curb ATM sharp practices

THE House of Representatives on Thursday urged the Central Bank of Nigeria (CBN) to direct various commercial banks and other financial institutions to put in place online monitoring mechanisms to determine the functionality of Automated Teller Machines and vault cash levels with a view to minimising the incidents of debits without dispensation of cash by the machine.

The House resolution followed a motion moved by Hon Joseph Edionwele, entitled “Need to investigate the sharp practices in Automated Teller Machines (ATM).”

While moving the motion, the lawmaker said that, many bank customers who use the ATM services are being short-changed by some malfunctioning ATMs which though unable to dispense cash, yet automatically debit the customer’s accounts and is recorded in the bank’s transactions and failure to complain may result in non-reversal in the case of many ignorant customers.

According to him,”many Nigerians may have unknowingly fallen victim of the sharp practices by banks considering the size able population of customers who may not be alerted on their communication devices on transactions in their accounts”.

He noted that, if these sharp practices are not checked, they may erode the confidence of the banking public in ATMs which could adversely affect the cashless policy being promoted by the CBN.

In his contribution, Hon Bode Ayorinde added that all malpractices relating to the use of ATM cards should be investigated.

However, a member, Hon Dennis Nnamdi in his contribution cautioned the House, saying, “We have to be circumspect in issuing directives because the CBN is fully aware of banks sharp practices.”

The motion was passed when the Speaker, Hon Yakubu Dogara put the motion to vote.