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2009-07-02:ATM redeployment: CBN extends deadline to banks

By Babatunde Oke

REPRIEVE, though temporary, came the way of commercial banks yesterday. The Central Bank (CBN) announced the extension of deadline for the removal of their Automated... Teller Machines (ATM) from public places from June by two months.

The extension came, even as some banks have stopped the issuance and renewal of ATM cards to their customers, in compliance with the apex bank’s directive that the financial institutions should migrate from magnetic stripe card to CHIP and PIN.

According to a circular signed by the acting Director, Banking Operations, Mr. A.S.F. Atoloye, CBN noted that the extension was necessitated by banks’ refusal to establish two ATM Consortia for the effective operation of out-station ATMs.

Consequently, the CBN said it would directly advertise for new ATM consortia in major newspapers, adding that it would notify the banks on the outcome.

The CBN had in the circular referenced dated April 7, this year, directed all deposit money banks to remove their ATMs from public places, on or before the end of last month.

The directive was met by series of lobby by various interest groups until the latest extension of the deadline.

The shareholders group had appealed to the regulator not to implement the deadline, as it was a way of ensuring the survival of banks that own the sites.

They also argued that the apex bank should have prevented the banks from building the sites, rather than asking them to wound up operations after the sites have become operational.

Speaking with the Nigerian Compass, some customers who just opened accounts with some of the banks said that the bank told them to come back for the cards.

They noted that the banks explained that their new cards, which will ensure security of transactions made through the ATM and check fraud, are yet to arrive.

Although the banks claimed they have ordered for the CHIP and PIN cards, the Nigerian Compass gathered that they are yet to take delivery of the cards.

Interswitch recently introduced a more secure CHIP and PIN card called Verve, which has a lot of security features that are very difficult for fraudsters to clone.

Source:Nigerian Compass


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