CBN Tightens Conditions for Electronic Payment Options

The Central Bank of Nigeria has reviewed operations of the NIBSS Instant Payments System (NIP) and other electronic payment options with similar features.

In a circular seen by Business Metrics, the apex bank explained that the review is further to the circular on the electronic payment subject referenced BPS/DIR/GEN/CIR/01/011 and dated August 13, 2014.

The CBN directed banks to comply with the the adjustments to its rules which are as follows:

1. Accept indemnity from customers for ‘Highly Secured Online Funds Transfer above N1m for individual and N10m for corporate, subject to a maximum of N25m (Individual) and N250m (Corporate);
2. Provide customers with the option of electronic or paper indemnity based on the customer’s preference;
3. Implement electronic indemnity with stricter controls requiring biometric verification of identity;
4. Adhere to multiple factor authentication (MFA) for ‘Highly Secured Online Funds Transfer;
5. Inform and educate customers on the use of indemnity to increase transaction limits where applicable.

“Please be guided accordingly,” CBN Concluded.