Bank of Jamaica (BOJ) has issued new service-level standards as guidelines for the operation of automated banking machines (ABMs) by deposit-taking institutions (DTIs) which are regulated by BOJ.
The new standards were issued on April 2 and DTIs have a nine-month transition period to bring themselves into conformity with the guidelines, given the far-reaching nature of the service-level standards.
Compliance will be assessed through BOJ’s review and publication of monthly reports from the DTIs.
No monetary sanctions will be applied as a result of breaches of the guidelines; however, non-adherence may give rise to supervisory concerns around safety and soundness with the attendant supervisory consequences.
Monthly reports on the performance of each DTI’s fleet of ABMs will be published with a two-month lag. These reports will include the geographical distribution of ABMs, the number of machines that were installed, the proportion of ABMs that were operational for the reporting period, the uptime for operational machines over the period and the recovery time for malfunctioning machines.
The ABM standards have been issued in a context where, despite the increasing availability and use of electronic payment methods, a significant number of Jamaicans still rely on cash to conduct transactions, the BOJ said.
The issuing of the standards follows consultations with the DTIs, and the guidelines have been put forward against the background of the development of a more robust market conduct and consumer protection framework for the financial services sector.
The new framework will be supported by appropriate legislation under the Twin Peaks system of financial sector regulation which is being developed. The standards also form part of the practising of the Twin Peaks regime ahead of the passage of supporting legislation.
The standards address the following:
The availability of cash Infrastructure maintenance and the management of service disruptionABM fees and charges The deployment of machinesAccessibility and ease-of-use Fraud minimisationThe safety and security of customers andFinancial education of ABM users
The guidelines are contained in the document, “Minimum Automated Banking Machines Service-Level Standards to Strengthen Consumer Protection for Customers of Deposit-Taking Institutions,” which has been published on the website of BOJ.
