CBN explains who gets N10,000 bank fine on failed transaction

The Central Bank of Nigeria (CBN) has cleared the air of the confusion and doubt about who gets the N10,000 sanction for non-reversal of failed transaction by erring bank, saying the money is a fine and not compensation. When it is paid, it goes to the regulator.

The CBN last week Friday, stated in the guideline that Nigerian deposit money banks will have to pay sanction worth N10,000 per item for a failed NIBSS Instant Payment (NIP) transaction not reversed into customer’s account within 24 hours.

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.

Dipo Fatokun, director, banking and payments system department who gave the explanation, said, “the amount is small but the essence is to enable them be on guard because when the banks prepare their annual report, whatever fines they paid will be reflected in the annual report and their shareholders will know that they are not complying with certain regulations, which is not good for the management”.

The sanction was stated 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, signed by Fatokun.

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

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.