CBN orders banks’ customers to pay indemnity for transfers above N1m

The Central Bank of Nigeria, CBN, has ordered banks to collect indemnities from their customers for highly secured online funds transfer amounting to N1million and above for individual customers and N10 million for corporate customers.

However, the apex bank placed an upper limit on the transferable amount at N25 million and N250 million for individual and corporate customers respectively.

The indemnity was meant to put liabilities for any infringements or risk arising from such transfers on the customers.

CBN disclosed this yesterday in a circular titled: “Review of operations of the Nigerian Interbank Settlement System, NIBSS, Instant Payments System and other electronic payment options with similar features.”

The circular signed by Director Payments System Management Department, Musa Jimoh stated: “Further to the Circular on the above subject referenced BPS/DIR/GEN/CIR/01/011 and dated August 13, 2014, banks are hereby required to comply with the following:

“Accept indemnity from customers for ‘Highly Secured Online Funds Transfer above N1 million for individual and N10 million for corporate, subject to a maximum of N25 million (Individual) and N250 million (Corporate);

“Provide customers with the option of electronic or paper indemnity based on the customer’s preference; Implement electronic indemnity with stricter controls requiring biometric verification of identity;

“Adhere to multiple factor authentication (MFA) for ‘Highly Secured Online Funds Transfer; Inform and educate customers on the use of indemnity to increase transaction limits where applicable.”