The Central Bank of Nigeria has instructed banks and payment service providers to collect indemnity from customers for highly secured online fund transfers of N1 million and above for individuals, and N10 million and above for corporates.
The CBN gave the directive in a circular posted on its website on Thursday 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 Musa Jimoh, director, payments system management department set the upper limits of transfer by an individual at N25 million and N250 million for corporates.
Customers providing banks indemnity implies that the customer bears the liabilities or risks arising from the transfers.
The apex bank said that the indemnity can be paper or electronic based on customers’ preference. It added that customers should be educated on its use.
The circular read: “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:
“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.”
Ifunanya Ikueze is an Engineer, Safety Professional, Writer, Investor, Entrepreneur and Educator.
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