Central Bank Of Nigeria (CBN)has instructed banks and payment service providers to accept indemnity from consumers for highly secure online cash transfers.
This was stated in a circular signed by Musa Jimoh, Director, Payments System Management Department, with the reference number PSM/DIR/PUB/CIR/01/006, titled ‘Circular on the review of operations of the NIBSS Instant Payments System and other electronic payment options with similar features,’ released on Thursday.
The circular stated that “Further to the circular on the above reference BSP/DIR/GEN/CIR/01/011 and dated August 13, 2014, banks are now required to comply with the following:
“Accept indemnity from customers for highly secured online funds transfer above N1m for individual and N10m for corporate, subject to a maximum of N25m (individual) and N250m (corporate).
“Provide customers with the option of electronic or paper indemnity based on the customer’s preference.
“Implement electronic indemnity with stricter controls requiring biometric verification of identity.
“Adhere to multiple-factor authentication for highly secured online funds transfer.
According to the CBN, the hubs will be positioned in locations with many business activities and cash transactions.
The CBN’s main goal in establishing the BNCH was to lower the risks and costs borne by banks, merchants, and large cash handlers in cash management activities and promote financial inclusion and utilise shared services to improve cash management efficiency.
The BNCH’s responsibilities, according to the CBN, include receiving naira-denominated deposits on behalf of financial institutions from individuals and businesses with large amounts of cash, disbursing naira-denominated withdrawals on behalf of financial institutions to individuals and businesses with large amounts of cash, and any other activities that the apex bank may permit.
It went on to say that the hubs would give a platform for users to deposit cash and receive value regardless of whatever bank their account was with.
“This guideline aims to provide minimum standards and requirements for BNCH registration and operations for effective supervision,” the CBN stated.