Customers to bear charges on electronic fund transfer

The Central Bank of Nigeria (CBN) on Friday last week issued a regulation on instant (inter-bank) Electronic Funds Transfer (EFT) services in Nigeria, which maintains that customers are to pay bank charges based on the Guide to Bank Charges.

It was stated in the regulation that “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”.

The CBN’s Guide to Bank Charges allows a N50 bank charge on electronic fund transfer below N10 million and N50 for N10 million and above, while N550 is charged for RTGS.

Customers have always groaned under excess charges and the deposit money banks and other financial institutions have continued to feed from transaction fees, and commissions.

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.

“Banks are accused of debiting customers accounts with unexplainable charges (to meet unexplainable targets from the Board, management, etc.) while customers run away from banks with unpaid obligations”, said Segun Ajibola, former president and chairman of council, Chartered Institute of Bankers of Nigeria (CIBN).

However, 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 said in the regulatory guideline .

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.

Consequently, all Instant EFT disputes shall be resolved within three working days. But where the Sending and Receiving entities fail to agree, the aggrieved entity shall report to the Director, Consumer Protection Department, CBN within five working days of the failure to resolve the dispute so as to minimize customer pain.

The CBN regulation further explained that where a sending entity erroneously sends value contrary to customer’s instructions due to wrong account number, wrong amount, duplication, and so on, to a receiving entity and requests the reversal in writing within 14 working days of the transaction, the receiving entity shall oblige within one business day without recourse to the customer (beneficiary) of the receiving entity provided funds are available. An automatic indemnity shall be inferred against the sending entity making the reversal request.

Also, where funds are not available, the receiving entity shall immediately notify its customer that the account was wrongly credited and provide proof of such notification to the sending entity.

The regulation states that the receiving entity shall notify the customer the consequences of not funding the account within 24 hours, which includes watch-listing in the banking industry, Credit Bureau and reporting to law enforcement agencies. The receiving entity shall watch-list the customer if he fails to provide fund within seven days.

Hope Moses-Ashike