CBN demands banks to indemnify transactions above N1m

Everest

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CBN demands banks to indemnify transactions above N1m
Posted on: June 04, 2022, 05:43:54 AM
CBN has required banks to collect indemnities from customers for highly secured online financial transfers of N1 million or more for individuals and N10 million for businesses.


The apex bank capped transfers at N25 million for individuals and N250 million for businesses. The indemnification placed all infringements or risks from such transfers on the consumers.

CBN stated this in a circular headed "Review of Operations of the Nigerian Interbank Settlement System, NIBSS, Instant Payments System and other electronic payment systems with comparable characteristics."

Musa Jimoh, director of Payments System Management Department, signed the circular, which read, "Further to Circular BPS/DIR/GEN/CIR/01/011 dated August 13, 2014, banks are expected to comply with the following:

"Accept indemnification from clients for 'Highly Secured Online Funds Transfer' over N1 million (individual) and N10 million (corporate), up to N25 million (individual) and N250 million (corporate);

"Depending on the customer's demand, provide electronic or paper indemnification to consumers; Implement biometric identity verification for electronic indemnification as a more stringent control measure.

For "Highly Secured Online Funds Transfer," adhere to multiple factor authentication (MFA) and inform and educate consumers on the usage of indemnification to enhance transaction limits when appropriate."

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