CBN to Fine Banks #10000 for any Failed or Delayed e-Transaction
– By Joseph Edun, ABH PRESS
The Central Bank of Nigeria has issued a directive to all Nigerian banks and financial institutions that any failed electronic transaction without reversal to the customer’s account within 24 hours will attract a fine of N10,000.
The sanction which will take effect from October 2nd was stated by the apex bank in a circular on the regulation of instant interbank electronic funds transfer services in Nigeria. A delayed application of inward Nigeria Instant Payment (NIP) into a beneficiary’s accounts beyond four minutes would also attract a penalty fee of N10,000 per item.
The CBN stated, “The sanctions above and any other prescribed in the Nigeria Bankers’ Clearing System rules or any amendment thereto, shall apply.”
An electronic funds transfer or an NIP, according to the apex bank, happens between two distinct entities when delivery from the sending entity to the receiving entity takes place within one minute (60 seconds), while a payments system where delivery to the receiving entity occurs beyond one minute is considered to be a faulty bank system.
“Whenever a credit has been erroneously applied to the customer’s account with the Receiving Entity, the customer shall promptly notify the Receiving Entity and authorize the reversal of such erroneous credit.”
“Where the customer account is unfunded, the customer shall provide funds within 24 hours, failure to provide funds shall be a ground for watch-listing of the customer in the banking industry, Credit Bureau and reporting to law enforcement agencies,” CBN said
The CBN also indicated that in an instance when a sender erroneously sends value contrary to the customer’s instructions due to a wrong account number, wrong amount to the receiver, both parties have the rights to request reversal in writing within 14 working days of the transaction.
CBN said a protection for loss of funds would be inferred against the sending entity making the reversal request attended to.
It noted that where funds were not available, the receiving entity should immediately notify its customer that the account was wrongly credited and provide proof of such notification to the sending entity.