Bank chiefs who breach Central Bank of Nigeria’s (CBNs) e-payment
reporting rules, including using unapproved third party end-to-end
payment solution are to face sanctions.
Chief executives of banks who flout the apex bank’s guidelines will
get a warning letter with the institution fined N2million, the
regulator said in the approved guideline on end-to-end electronic
payment of salaries, pensions, suppliers and taxes it released
The CBN insists on approving all third party payment solution being
deployed by banks.
The approved guideline, said the banks were expected to promote the
adoption of end-to-end electronic payments by all stakeholders covered
by this regulation.
The approved guidelines also mandated bank customers that receive
duplicate or excess payments into their accounts but fail to refund to
the bank will have their Bank Verification Number (BVN) placed on the
watchlist.
In the CBN regulation on electronic payments and collections for
public and private sector, it said that in the event of
duplicated/excess payment not noticed but withdrawn by the
beneficiary, the beneficiary shall make funds available for refund to
the payer.
It said non- compliance shall result in placement of the beneficiary
on the BVN Watch-list.
The regulator said that bank employees and pensioners are to maintain
appropriate bank accounts with banks, Other Financial Institutions or
any other approved channel for receiving payments such as mobile
money/electronic wallet, subject to the CBN’s approved Know Your
Customer limits; provide valid account and contact details to the
Payer; report cases of non-payment, delayed payment or wrong payment
of salaries/contributory pension remittances carried out on a CBN
approved e-payment platform, to the Payer; register and maintain a
Retirement Savings Account (RSA) with a licensed Pension Fund
Administrator (PFA).
It said the apex bank in exercise of its powers under the CBN Act,
2007 released the new guidelines to fully align with the core
objectives of the National Payments System Vision 2020 (PSV2020) to
ensure the availability of safe, effective and efficient mechanisms
for conveniently making and receiving all types of payments from any
location and at any time, through multiple electronic channels.
This, it said, will reduce the time and costs of transactions,
minimise leakages in revenue receipts and at the same time provide
reliable audit trails, thereby ensuring that the Nigerian Payments
System aligns with international best practices.
The regulator also said that banks, other financial institutions and
mobile money operators are to promote the adoption of end-to-end
electronic payments by all stakeholders covered by this Regulation.
The financial institutions are to also provide payers and
beneficiaries with appropriate accounts with banks, other financial
institutions or any other approved channel for receiving payments such
as mobile money/electronic wallet, subject to the CBN’s approved Know
Your Customer limits.
The e-payment payers are to also adopt end-to-end electronic payment
of salaries for employee staff strength of 20 and above; maintain
appropriate account with banks or other financial institutions and
adopt a CBN approved end-to-end electronic payment platform and use
for all forms of payment and collections.
