Remember when you will transfer money and it will not be credited to the account for hours, sometimes days, well, the Central Bank of Nigeria (CBN) is trying to end it now – and it is using something that the banks fear most, fines.
According to a new policy by the apex bank, any failed Nigerian Instant Payment 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.
According to CBN’s circular on the regulation on instant inter-bank electronic funds transfer services in Nigeria that was issued to all Deposit Money Banks, microfinance banks, other financial institutions, mobile money operators, development finance institutions, payment service providers and other stakeholders, delayed application of inward NIP into beneficiary’s accounts beyond four minutes would attract a penalty fee of N10,000 per item.
“The sanctions above and any other prescribed in the Nigeria Bankers’ Clearing System rules or any amendment thereto, shall apply,” CBN said.
The circular noted 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.
PUNCH reported CBN stated that 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.
“The receiving entity shall refund the transaction as soon as funds are either partially or fully available,” CBN said
