Regulatory Alerts2014-08-14 | BPS/DIR/GEN/CIR/01/011Circular on the Review of Operations of the NIBSS Instant Payment (NIP) System and Other EPayment Options with Similar Features
The Central Bank of Nigeria (CBN) has issued new directives regarding online funds transfers and electronic payment options. The directives aim to strengthen the risk aversion measures for NIBSS Instant Payment (NIP) system and other similar systems. These include categorizing online funds transfer into three categories based on security levels, setting daily limits, implementing SMS/email transaction alerts, introducing hardware tokens and soft tokens, mandating banks to establish internal procedures or policies, and requiring customers to issue a written indemnity for transactions exceeding the specified limits. Banks are expected to implement these changes by 31st December 2014 and communicate the new policies clearly to their customers before implementation.