CBN CIRCULAR MANDATES BANKS TO PAY A FINE OF 10,000 NAIRA IF MONEY TRANSFER EXCEEDS FOUR MINUTES

In a circular released by the Central Bank of Nigeria (CBN), banks will pay a fine of 10,000 naira for every money transfer that exceeds four minutes.

The circular is titled: “Circular on the regulation on instant inter-bank electronic funds transfer services in Nigeria” and it was issued to all deposit money banks, microfinance banks, other financial institutions, mobile money operators, development finance institutions, payment service providers and other stakeholders in Nigeria.

According to the CBN, any failed instant payment transaction not reversed into the customer’s account within 24 hours, based on the complaint of the sender and/or beneficiary will attract a fine of 10,000 naira.

The circular was signed by ‘Dipo Fatokun, CBN’s director, banking and payments system department, and the regulation will take effect from October 2, 2018.

According to the CBN, electronic funds transfer or a NIP happens between two distinct entities when the delivery from the sending entity to the receiving entity takes place within one minute (60 seconds), while a payments system where delivery to the receiving entity occurs beyond one minute is considered to be an ACH system.

It notes that on an occasion where a sending entity erroneously sends value contrary to the customer’s instructions due to wrong account number, wrong amount, duplication among others to a receiving entity and requested the reversal in writing within 14 working days of the transaction, the receiving entity should oblige within one business day without recourse to the customer (beneficiary) of the receiving entity provided funds are available.

And an automatic indemnity would be inferred against the sending entity making the reversal request.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

%d bloggers like this: