Banks, PSPs to process all bulk payments on their platforms, says CBN
A graduate of Economics and Statistics from the University of Benin. An experienced researcher and business writer in the print and digital media industry, having worked as a Research Analyst at Nairametrics, Voidant Broadcasting Ltd, Entrepreneurs.ng, and currently a Market and Finance Writer at Business a.m. For stories, press releases, exclusive events, call +2347052803696 or send a mail to abuedec@gmail.com.
The Central Bank of Nigeria (CBN) has directed all licensed banks and payment service banks (PSPs) to ensure that all end-to-end bulk payments or transfers are processed on their platforms for their customers with a detailed breakdown of the accounts that receive credits retaining custody of the sender’s bank.
This directive is contained in a circular to banks and payment services providers signed by Musa Jimoh, director, department of payment system management, CBN, in which the apex bank disclosed that it has noticed the inherent problems associated with the processing of bulk transfers by commercial and payment service banks in the country.
The apex bank noted that at the moment it has been noticed that originating banks and PSPs pass a single entry debit through the initiating customer’s account and multiple credits to beneficiaries without adequate records of the credit entries in their system, and further stressed that it distorts the bank’s audit trail and also hampers transparency.
In order to mitigate this challenge, the CBN stated that all banks and PSPs are required to ensure full compliance with the directive to process all end-to-end bulk transfers on their platforms with the full breakdown of the credit receiving account which will be retained in the custody of the sender’s bank.
“In order to address his challenge, the CBN hereby directs that all end-to-end bulk payments or transfers shall henceforth be processed on the platforms of banks or PSPs for their customers with a detailed breakdown of the accounts that receive the credits retained in the custody of the sender’s banks.
“All banks and PSPs are required to ensure the full compliance with this requirement and all other payments system regulations,” the circular reads in part.