Banks to accept indemnity for transactions above N1m—CBN

The Central Bank of Nigeria, (CBN) has asked banks operating in the country to accept indemnity from customers for transactions of N1million and above. The apex bank give the directive through a circular signed by Director Payments System Management Department, Musa Jimoh. The circular titled, “Review of operations of the Nigerian Interbank Settlement System, NIBSS, Instant Payments System and other electronic payment options with similar features” read;“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.” This is meant to put liabilities for any infringements or risk arising from such transfers on the customers.