Regulatory Alerts2008-12-10 | TED-FEM-FPC-GEN-01-131-08Circular on Access to Intra-day Facility
The Central Bank of Nigeria is introducing the Intraday Facility (ITF) for Deposit Money Banks and Discount Houses in line with CBN Inter-Bank Funds Transfer System Rules. This facility will provide temporary liquidity within business hours, thereby improving the RTGS operation. Starting December 10th, 2008, access to ITF would be via Temenos Internet Banking platform, and collateral for this facility will include Nigerian Treasury Bills and FGN Bonds.
CENTRAL BANK OF NIGERIA Central Business Area District P.M.B. 0187 Garki, Abuja 09-61638445 09-61638455 (Fax) December 5, 2008 BOD/DIR/CIR/2008/GEN/3/18 TO: ALL DEPOSIT MONEY BANKS AND DISCOUNT HOUSES ACCESS TO INTRADAY FACILITY In line with the provisions of the CBN Inter-Bank Funds Transfer System (CIFTS) Rules and Regulations, the Central Bank of Nigeria has concluded arrangements to provide intraday facility (ITF) for the use of Deposit Money Banks (DMBs) and Discount Houses (DHs).
The provision of intraday facility is expected to, enhance banks' access to temporary liquidity within the business/working day, forestall the creation of queues on the Real Time Gross Settlement (RTGS) and thereby strengthen the operations of the RTGS. Participating institutions, however, shall unwind the facility on or before the close of business; failing which the collateral used for the facility would be discounted. The DMBs and the DHs are hereby notified that the ITF can be accessed through the Temenos Internet Banking (TIB) with effect from Wednesday, December 10, 2008. The ITF shall be collaterised by Nigerian Treasury Bills and FGN Bonds.
Thank you.
ames K. A. Olekah Director, Banking Operations Department