Banks to pay N10,000 per item for failed NIP transaction

Nigeria deposit money banks will have to pay N10,000 per item sanction for a failed NIBSS Instant Payment (NIP) transaction not reversed into customer’s account within 24 hours, the Central Bank of Nigeria (CBN) said in a guideline .

Also, N10,000 sanction will apply to banks that delay application of inward NIP into beneficiary’s accounts beyond four minutes. The regulator will monitor these based on complaints of sender and/ or beneficiary.

The CBN has fixed the effective date of the regulation of Electronic Funds Transfer (EFT) services in the country at October 2, 2018.

Dipo Fatokun, director, banking and payments system department, stated this in circular to all deposit money banks, Microfinance banks, other financial institutions, mobile money operators, development finance institutions, payment service providers and other stakeholders on the regulation on instant (inter-bank) electronic funds transfer services in Nigeria.

According to the CBN, the regulation covers Instant Electronic Funds Transfer Services in Nigeria on various payment channels and any payment platform that seeks to provide Instant Electronic Funds Transfer Services in Nigeria.

The CBN sets out the rights and responsibilities of all stakeholders to Electronic Funds Transfer under the regulation.

In terms of fees and charges, the CBN said, Instant EFT service providers and Sending entities shall apply fees and charges in compliance to the approved Guide to Bank Charges. The Receiving entity shall not earn income on funds transferred. However, statutory levies/charges shall apply.