The Central bank of Nigeria (CBN) has directed all financial institutions and payment service providers in the country to process all bulk payments on the platforms of payment service providers (PSPs) and banks.
The circular signed by the Director of Payments System Management Department, CBN, Musa I. Jimoh, dated 6 September noted that the new directive was to mitigate the issues facing the processing of bulk payments.
This new directive, according to the circular, will ensure that customers receive a breakdown of the accounts that receive credits, with the information stored in the “custody of the sender’s banks”.
READ ALSO: Fintech Start-up, Prospa, Raises $3.8M Pre-Seed Fund
The circular read partly, “Currently, originating banks and PSPs pass a single debit entry through the initiating customer’s account and multiple credits to beneficiaries without adequate records of the credit entries in their system.
“In order to address this challenge, the CBN hereby directs that all end-to-end bulk payments or transfers shall henceforth be processed on the platforms of banks or PSPs for their customers with a detailed breakdown of the accounts that receive the credits retained in the custody of the sender’s banks.
“All banks and PSPs are required to ensure full compliance with this requirement and all other payment system regulations.”
