Uzbekistan Central Bank to Fine Banks for ATM Failures

Tashkent, Uzbekistan (UzDaily.com) — Uzbekistan's Central Bank will begin fining commercial and state banks for ATM cash withdrawal failures starting August 6, the regulator's chief announced this week — a response to nearly 290,000 documented malfunctions in 2025 that left thousands of citizens unable to access their money.

Central Bank Governor Timur Ishmetov disclosed the forthcoming sanctions during a plenary session of the Senate of the Oliy Majlis on June 13, where he presented the regulator's annual performance report for 2025.

The scale of the problem drew sharp questions from senators. Kutbidin Burhanov, Chair of the Senate Committee on Defense and Security, noted that malfunctions had in some cases resulted in ATMs refusing to dispense cash or physically retaining customers' bank cards. Around 10,000 complaints from such incidents took more than 15 days to resolve, and over 3,000 citizens were forced to contact law enforcement agencies to recover their funds or cards.

Ishmetov acknowledged systemic issues while offering important context: the 290,000 incidents represent approximately 0.08% of the 341 million ATM transactions conducted in 2025. He also stressed that a significant share of failures cannot be attributed directly to banks. His breakdown: roughly 20% of incidents stemmed from ATMs running out of the required banknote denominations; another 20% from PIN entry errors or card blocks; 15% from connectivity outages; and around 10% from power failures.

Critically, approximately 15% of incidents — some 46,000 cases — were directly attributable to banks and payment system operators, making them the primary target of the new penalty regime.

The Central Bank framed the move as part of a broader effort to strengthen consumer rights protection, signaling it intends to treat such incidents not merely as technical glitches but as potential violations of consumer rights. The first regulatory instrument providing for financial sanctions against banks for ATM-related violations takes effect August 6. The regulator has already issued recommendations to banks on improving payment infrastructure quality.