CEM REPORT | Following the rise in electronic transaction the Central Bank of Nigeria (CBN) has raised the limit for Online Funds Transfer from N100 million to N250 million for Companies and from N10 million to N25 million for individuals.
This is according to a circular released by the Central Bank of Nigeria and signed by Musa I. Jimoh, Director, Payments System Management Department.
This revision would take effect on the operations of Nigeria Inter-Bank Settlement Systems (NIBSS) Instant Payments System and other Electronic Payment Options with Similar Features in Nigeria.
According to the circular seen by CEM, the CBN stated certain clauses that must be adhered to before transaction is approved.
An indemnity must be provided and accepted from customers for ‘Highly Secured Online FundsTransfer above N1m for individual and N10m for corporate, subject to a maximum of N25m (Individual) and N250m (Corporate).
The operator must provide customers with the option of electronic or paper indemnity based on the customer’s preference and Implement electronic indemnity with stricter controls requiring biometric verification of identity.
CBN added that online payment operators should adhere to multiple factor authentication (MFA) for ‘Highly Secured Online Funds Transfer.
Also operators are responsible for informing and educating customers on the use of indemnity to increase transaction limits where applicable.
According to the NIBSS, a total of N114.8trillion electronic transaction were completed between January to April, via the NIBSS Instant Payment technology (NIP).
NIBSS data also revealed that NIP volume increased by 4% to 1.4 billion from around 999 million in the same period last year according o Nairametrics report.