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CBN To Sanction Banks Over Failed Transactions, Other Lapses

The Central Bank of Nigeria (CBN) has issued new regulatory guidelines relating to banks’ handling of customers’ complaints over failed transactions with specific sanctions spelt out for such lapses.

According to a circular, signed by the apex bank’s Director of Banking and Payment System Department, Dipo Fatokun, effective October 2 this year any Instant Payment (NIP) transaction not reversed into the customer’s account within 24 hours based on complaint of the sender and/or beneficiary will attract a fine of N10,000 on any defaulting bank.

Similarly, the lenders were cautioned against delayed application of inward NIP into beneficiary’s accounts beyond four minutes, as violations will attract a penalty fee of N10,000 per item.

In the circuler titled ‘Circular on regulation on instant inter-bank electronic funds transfer services in Nigeria’, issued to Deposit Money Banks, microfinance banks, and other financial institutions’, the apex bank stated that where a sending entity erroneously sent value contrary to the customer’s instructions due to wrong account number, wrong amount, duplication among others to a receiving entity and requested the reversal in writing within 14 working days of the transaction, the receiving entity should oblige within one business day without recourse to the customer (beneficiary) of the receiving entity provided funds were available.

This is even as it stated further that an automatic indemnity would be inferred against the sending entity making the reversal request.

The regulatory directive also provided that where funds were not available, the receiving entity should immediately notify its customer that the account was wrongly credited and provide proof of such notification to the sending entity.

 

 

 

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