The Central Bank of Nigeria (CBN) has instructed Nigerian banks to collect indemnities from their customers in the amount of N1 million for individual customers and N10 million for corporate customers for highly secured online funds transfers.
However, the apex bank set a transferable amount limit of N25 million for individual customers and N250 million for corporate customers. Nigeria is entering a period of increased money supply as a result of politics, prompting the directive. Indemnity refers to the payment of compensation to one party by the other in the event of a loss. As a result, banks will feel secure if any problems arise following the completion of customer transfer requests.
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 CBN revealed this on Thursday.
“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: “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:
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“Accept indemnity from customers for ‘Highly Secured Online Funds Transfers’ exceeding N1 million for individuals and N10 million for corporations, up to a total of N25 million for individuals and N250 million for corporations;
“Offer customers the choice of electronic or paper indemnity, depending on their preferences; Implement electronic indemnity with tighter controls, such as biometric identity verification;
“Adhere to MFA for ‘Highly Secured Online Funds Transfer; Inform and educate customers on the use of indemnity to increase transaction limits where applicable.”