Some local banks have requested an extension of the timeframe for compliance with the minimum service standards governing the operations of Automated Banking Machines (ABMs), the Bank of Jamaica (BOJ) has disclosed.
The standards, outlined in a code of conduct issued in April, aim to address longstanding consumer concerns about ABM reliability and accessibility. Banks were initially given nine months to meet the new requirements.
Speaking at the BOJ’s recent Quarterly Monetary Policy Report press conference, Deputy Governor Dr Jide Lewis noted that the requests for extensions were partly due to disruptions caused by Hurricane Beryl.
He noted, “most of them [banks] have recovered quite nicely,” from the impact of the hurricane and that the BOJ continues to work closely with the DTIs “as they roll out their action plans that would see them bringing themselves into conformity with those standards.”
The banks are required to fully align with the standards by early 2024. According to Lewis, the BOJ has observed some improvements in ABM performance and expects full compliance within the first quarter of next year.
“In terms of their wider performance, we have seen improvements and so we anticipate that they will be able to, within the first quarter of next year, pull themselves into full compliance with those standards,” Lewis said.
Bank of Jamaica (BOJ) Senior Deputy Governor, Dr Wayne Robinson (left), outlines details of the new BOJ Automated Banking Machine (ABM) Service-Level Standards for Deposit-Taking Institutions (DTIs). Listening is BOJ Deputy Governor with responsibility for the Financial Institutions Supervisory Division, Dr Jide Lewis in May 2024. (Photo: JIS)
These standards, which bring the banks under increased scrutiny but do not attract fines for breaches, are aimed at addressing long-standing concerns raised by consumers.
They provide that at least 90 per cent of ABMs must be working all the time and those that are operational must be working at least 95 per cent of the time.
In addition, machines located in urban, or resort areas must not be out of cash for more than 60 consecutive minutes, while the time out of cash for ABMs located in rural areas should be no more than 180 minutes or three hours.
Lewis said discussions are still underway with the DTIs and the BOJ is consulting with the industry in relation to the framework that the banks will use to evaluate the reasonableness of their ABM fees and charges.
“In relation to entity-specific issues, we continue to have those discussions with them to ensure that they land on their feet,” he said.
Compliance with the minimum service standards will be assessed through the BOJ’s review and publication of monthly reports from the DTIs. If the banks do not comply, it may give rise to supervisory concerns around safety and soundness with the attendant supervisory consequences, the BOJ’s website notes.
As for the ‘up times’ of the ABMs, Lewis said the banks have not reached the 95 per cent standard as yet and are currently operating at around 80 to 90 per cent. “So, there is still room for improvement.”
Meanwhile, Deputy Governor with responsibility for Financial Markets and Payment Systems,Natalie Haynes said the BOJ “will have to do some investigations,” into the seeming push-back against tap-to-pay services by some merchants.
The matter of the reluctance of some merchants to accept, in particular, mobile tap-to-pay options, was raised by reporters at the Quarterly Monetary Policy Report Press Conference. But the BOJ has not received any complaints, Haynes said.
The central bank has been championing the push for more digital payment services through its regulatory sandbox amid an overall theme of bolstering financial inclusion.
