Connect with us

Business

CBN extends implementation of N100,000 limit on USSD transactions

Published

on

FG drops $783m TSA suit against 7 banks, seeks out-of-court settlement

The Central Bank of Nigeria (CBN) has extended the implementation of transaction limit on Unstructured Supplementary Service Data (USSD) for the financial systems in the country.

The USSD technology is a protocol used by the GSM network to communicate with a service provider’s platform.

The CBN, in a statement on Friday by Dipo Fatokun, the Director, Banking and Payment Systems Department, said the extension was to ensure it fully achieves the objective of the framework.

“The CBN has observed that in order to fully realise the objective of the Framework, the bank has considered and approved the extension of the implementation date for the circular to be effective from October 1, 2018,” the statement read.

The bank had directed financial institutions on the implementation of the Regulatory Framework for the use of USSD in the Nigerian Financial System, from June 1, 2018.

Read also: Manufacturing sector reports sluggish growth in May

According to the bank, the vast applications of the USSD technology, in terms of available services have raised the issue of the risks inherent in the channel.

The regulator stated that the implementation in Nigeria has created multiple USSD channels to customers, thereby increasing their exposure to risk, without a common standard for all.

The framework directed all financial institutions providing use of the USSD channel to put a limit of N100,000 per customer, per day for transactions as may be required to mitigate the risks.

The bank further explained that the new framework was in furtherance of its mandate to develop and enhance the security of the electronic payments in the country.

 

RipplesNigeria… without borders, without fears

Click here to join the Ripples Nigeria WhatsApp group for latest updates.

Join the conversation

Opinions

Support Ripples Nigeria, hold up solutions journalism

Balanced, fearless journalism driven by data comes at huge financial costs.

As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.

If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.

Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.

Donate Now