Regulatory Alerts2017-02-14 | BPS/DIR/CIR/01/019Exposure Draft of the Guidelines on Instant (Inter-bank) Electronic Funds Transfer Services in Nigeria
The Central Bank of Nigeria has issued guidelines for an instant electronic funds transfer (EFT) system, designed to facilitate faster transactions between banks. Key provisions include: 1. Participants must be licensed by the CBN and comply with all regulatory requirements. 2. Transactions must occur within 1 minute or be classified as ACH (automated clearing house) payments. 3. Settlement cycles should ideally occur at least twice a day to minimize risks associated with deferred net settlement systems. 4. Collateral management systems are mandatory for all parties involved in EFT transfers. 5. Fees and charges must adhere to the approved Guide to Bank Charges. 6. A dispute resolution system must be implemented, with disputes concluded within 2-working days. 7. The CBN's existing guidelines on fraud desks and watchlisting for wrong transactions apply. 8. Sanctions in accordance with the approved Clearing System Sanctions shall be imposed as necessary. These guidelines aim to ensure efficient and secure electronic funds transfer services within Nigeria's banking sector.