Banks To Pay N10,000 Fine If Money Transfer Exceeds 4 Minutes – CBN
The Central Bank of Nigeria (CBN) has released stiff regulations that would henceforth make it compulsory for deposit money banks and other financial service providers in the country to return failed transactions into the account of its customer under the Electronic Funds Transfer (EFT) within 10 minutes or face severe sanctions.
In one of the regulations, the apex bank stated that delayed application of inward NIP into beneficiary’s accounts beyond four minutes would attract a penalty fee of N10,000 per item.
It made this known in a circular, ‘Circular on the regulation on instant inter-bank electronic funds transfer services in Nigeria’ issued to all deposit money banks, microfinance banks, other financial institutions, mobile money operators, development finance institutions, payment service providers and other stakeholders.
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 an ACH system.
The bank said any failed instant payment transaction not reversed into the customer’s account within 24 hours, based on the complaint of the sender and/or beneficiary will attract a fine of N10,000.
According to the letter signed by ‘Dipo Fatokun, CBN’s director, banking and payments system department, the regulation will be effective from October 2, 2019.
According to the document, on an occasion where a sending entity erroneously sends value contrary to the customer’s instructions due to wrong account number, wrong amount, duplication among others to a receiving entity and requested the reversal in writing within 14 working days of the transaction, the receiving entity should oblige within one business day without recourse to the customer (beneficiary) of the receiving entity provided funds are available.
An automatic indemnity would be inferred against the sending entity making the reversal request.