CBN Orders Bank Users To Pay Indemnity For Transfers Above N1 Million

The Central Bank of Nigeria (CBN) has stated that commercial bank users are required to pay indemnity for transfers above N1 million.

This is according to a recently released circular by the Central Bank of Nigeria, signed by Musa I. Jimoh, Director, Payments System Management Department.

Investors King gathered that the ceiling for ‘Highly Secured Online Funds Transfer’ was enhanced by CBN from N100 million to N250 million for companies and from N10 million to N25 million for individuals.

The circular stated: “Further to the Circular on the above subject referenced BPS/DIR/GEN/CIR/01/011 and dated August 13, 2014, banks are hereby required to comply with the following:

“Accept indemnity from customers for ‘Highly Secured Online Funds Transfer above N1 million for individual and N10 million for corporate, subject to a maximum of N25 million (Individual) and N250 million (Corporate);

“Provide customers with the option of electronic or paper indemnity based on the customer’s preference; Implement electronic indemnity with stricter controls requiring biometric verification of identity;

“Adhere to multiple factor authentication (MFA) for ‘Highly Secured Online Funds Transfer; Inform and educate customers on the use of indemnity to increase transaction limits where applicable.”

Prior to this, Investors King gathered that the Nigeria Inter-Bank Settlement Systems (NIBSS) announced that transactions of N114.8 trillion were processed electronically in Nigeria between January and April of this year. The NIBSS Instant Payment technology was used to complete the transactions (NIP).

Furthermore, the NIP volume climbed by 4% to 1.4 billion in the last four months, according to NIBSS data, up from roughly 999 million in the same period last year.

In like manner, the NIP platform had N26.6 billion in transactions in January. This is up 43.7 percent from the N18.5 trillion reported in the same month last year.

As a matter of fact, the overall value of transactions on the NIP platform was N29.2 trillion in April of this year. This represents a 41.6 percent increase over the N20.6 trillion in April 2021.