By John Ikani
The Central Bank of Nigeria (CBN) has raised the limit for ‘Highly Secured Online Funds Transfer from N100 million to N250 million for Companies and from N10 million to N25 million for individuals.
CBN disclosed this yesterday in a circular titled: “Review of operations of the Nigerian Interbank Settlement System, NIBSS, Instant Payments System and other electronic payment options with similar features.
According to the circular, NIBSS Instant Payments System and other Electronic Payment Options must “accept indemnity from customers for ‘Highly Secured Online FundsTransfer above N1m for individual and N10m for corporate, subject to a maximum of N25m (Individual) and N250m (Corporate);”
The CBN told the Payments System operators to “provide customers with the option of electronic or paper indemnity based on the customer’s preference and Implement electronic indemnity with stricter controls requiring biometric verification of identity”
The apex bank also told the online payment operators to adhere to multiple factor authentication (MFA) for ‘Highly Secured Online Funds Transfer.
The Bank added “Inform and educate customers on the use of indemnity to increase transaction limits where applicable.”
The CBN also released another guideline titled ‘Guidelines for the registration & operation of Bank Neutral Cash Hubs in Nigeria’.
It stated in the guidelines that BNCHs were cash collection centers to be established by registered (licensed) processing companies or Deposit Money Banks based on business needs.
The CBN said the hubs would be located in areas with high volumes of commercial activities and cash transactions.
It further stated that the hubs would provide a platform for customers to make cash deposits and receive value irrespective of the bank with which their account is domiciled.
“This guideline aims to provide minimum standards and requirements for BNCH registration and operations for effective supervision,” the CBN stated.
According to the CBN, the key objective of setting up the BNCH was to reduce the risks and cost borne by banks, merchants and huge cash handlers in the course of cash management activities; deepen financial inclusion, and leverage on shared services to enhance cash management efficiency.
The CBN said the BNCH’s duties included receipt of naira denominated deposits on behalf of financial institutions from individuals and businesses with high volumes of cash; disbursement of naira- denominated withdrawals on behalf of financial institutions to individuals and businesses with high volumes of cash, and any other activities that might be permitted by the apex bank.
