CBN ISSUES REGULATION FOR INSTANT MONEY TRANSFER

From October 2, 2018 all electronic money transfers expected to be concluded within 60 seconds will be done under clear cut regulations issued by the Central Bank of Nigeria (CBN).

The circular on the new regulations were issued on Friday September 14 and they will become effective after Nigeria's independence day holiday, according to CBN Director of Banking and payments, Dipo Fatokun.

The regulations aim at setting rules for instant electronic fund transfer; prescribing rights and obligations and establishing procedures for enhancing instant transfer within minimum standards 

For example, under the rules, no transfer service shall be provided for any customer by a bank he or she does not have account with I unless such a customer  has an account with another bank in Nigeria. No such account, no service.

Debits to customers accounts for the transfer must be fully secured before initiating the transfer.

After the transfer, notification message to the initiating customer must confirm senders name, BVN and accounted debited plus beneficiary name and account.

Where transfer fails, debited monied must be refunded in full by the receiving entity within 10 minutes.

At the receiving end of the transaction, proceeds must be applied to beneficiary accounts within 60 seconds before confirming success of the transaction and notification must also go to the customer.

Where transfers are made to wrong accounts  due to system error or mistakes by the customer, the regulations also provide for procedures and time frame for reversal of such transactions with or without the customers cooperation.

Indeed, if any money is transfered in error to your account and you fail to provide funds for such refund within 24 hours, your account and BVN will be put on the banking industry's watch list and formal report made to law enforcement agencies.

Service providers who fail to ensure refunds within 24 hours will pay N10,000 fine per each transaction. Ditto for received funds credited to beneficiary accounts above 4 minutes after the transaction.

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