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CBN directs banks to request indemnity for transfers above N1m

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FG scales down issuance of treasury bills by N1.27trn

The Central Bank of Nigeria (CBN) has asked Nigerian banks to collect indemnities from their customers for highly secured online funds transfers amounting to N1million for individual customers and N10 million for corporate customers.

However, the apex bank placed an upper limit on the transferable amount at N25 million and N250 million for individual and corporate customers respectively.

The directive is coming as Nigeria enters a period of increased money supply due to politics.

Indemnity means making compensation payments to one party by the other for any loss that occurr.

Banks will therefore feel insured should any issues arise after the execution of transfer requests by customers.

CBN disclosed this on Thursday 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”.

The circular signed by Director Payments System Management Department, Musa Jimoh stated: “Further to the Circular on the above subject referenced BPS/DIR/GEN/CIR/01/011 and dated August 13, 2014, banks are hereby required to comply with the following:

Read also: CBN directs banks, fintech companies to seek customer consent before sharing personal data

“Accept indemnity from customers for ‘Highly Secured Online Funds Transfer above N1 million for individual and N10 million for corporate, subject to a maximum of N25 million (Individual) and N250 million (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 (MFA) for ‘Highly Secured Online Funds Transfer; Inform and educate customers on the use of indemnity to increase transaction limits where applicable.”

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