To protect consumers against sharp practices, the Central Bank of Nigeria (CBN) will charge FinTech firms and banks to reverse instant payment transaction into the customer’s account within 24-hour.
The sanction is however based on complaints of sender and/ or beneficiary.
A failed NIP transaction not reversed into the customer’s account within 24-hour will attract N10,000.00 per item while delayed application of inward NIP into beneficiary’s accounts beyond four minutes will also attract the same fine.
These directives are contained in the Regulation on Instant (Inter-Bank) Electronic Funds Transfer Services in Nigeria issued recently by the apex bank.
The regulation covers instant electronic funds transfer services in Nigeria on various payment channels and any payment platform that seeks to provide instant electronic funds transfer services in Nigeria.
Instant payment means Instant Electronic Funds Transfer [EFT] payments system between two distinct entities when delivery from the sending entity to the receiving entity takes place within one minute (60 seconds).
A payments system where delivery to the receiving entity occurs beyond one minute is considered to be an ACH system
However, any stakeholder to the Instant EFT service may propose amendments to the regulation. Such amendment proposals shall be formally forwarded to the office of the Director, Banking and Payments System Department of the CBN for consideration.