….revalidates April 2004 policy on settlement banking relationship
The Central Bank of Nigeria has suspended settlement banking to all the clearing sessions with effective from January 2, 2018, as contained in a circular Reference No BSP/DIR/GEN/02/039 dated November 10 this year, till further notice.
In a new Circular with Reference No BPS/DIR/CIR/GEN/02/041 dated December 21, 2017 and addressed to all Deposit Money Banks (DMBs) and the Nigeria Inter-Bank settlement System (NIBSS), the apex bank recalled that the above directive had earlier been issued on the extension of settlement banking arrangement that is being practiced for cheque clearing sessions 1 and 2 to other settlement sessions (0 and 3).
In the latest circular signed by Dipo Fatokun, the CBN stated that the aforementioned circular directed the settlement banks to update the agency agreements with their respective non-settlement banks while merchant banks that do not have settlement banks should appoint settlement banks and inform Director, Banking & Payment Department CBN Abuja on or before 15th December, 2017
It therefore directed the DMBs and NIBSS “to note that the new policy on the extension of settlement banking to all clearing sessions with effective from January 2, 2018, as contained in the referenced circular, is hereby suspended until further notice”
It advised the Banks and NIBSS to note further that “for the avoidance of doubt, the existing policy that was introduced in April 2004, on settlement banking relationship for sessions 1 and 2 (cheque and NEFT clearing instruments) only shall remain in force”