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CBN Goes Hard On Nigerian Banks, Announces Fines for Failed Transaction Reversals, Others

CBN Goes Hard On Nigerian Banks, Announces Fines for Failed Transaction Reversals, Others

The Central Bank of Nigeria has said that any failed Nigerian Instant Payment (NIP) transaction not reversed into the customer’s account within 24 hours based on complaint of the sender and/or beneficiary will attract a fine of N10, 000.

The CBN, in a circular also said delayed application of inward NIP into beneficiary’s accounts beyond four minutes would attract a penalty fee of N10, 000 per item.

The apex bank made this known in its ‘Circular on the regulation on instant inter-bank electronic funds transfer services in Nigeria’, issued to Deposit Money Banks, microfinance banks, and other financial institutions.

The circular, signed by Dipo Fatokun, CBN’s director of banking and payment system department, said the new regulation takes effect October 2, 2018.

The circular stated that where a sending entity erroneously sent 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 were available.

An automatic indemnity would be inferred against the sending entity making the reversal request, it stated. Where funds were not available, it added, the receiving entity should immediately notify its customer that the account was wrongly credited and provide proof of such notification to the sending entity.

It added that the receiving entity should notify the customer about the consequences of not funding the account within 24 hours, which included watch-listing in the banking industry, credit bureau and reporting to law enforcement agencies.

In the circular, the receiving entity would watch-list the customer if he failed to provide funds within seven days, the CBN stated.

CBN Goes Hard On Nigerian Banks, Announces Fines for Failed Transaction Reversals, Others

Tags: cbn

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