The Central Bank of Nigeria (CBN) has released new rules to banks and Payment Service Providers (PSBs) on how to process consumer bulk payments.
According to the Central Bank of Nigeria, PSPs and banks must now separate all transactions that would normally be categorized as bulk payment upon transition.
The apex bank in a circular posted on its website yesterday signed by the Director, Payments System Management Department Musa Jimoh stated that the directive was in a bid to ensure transparency and clarity for auditing within the banking system.
The regulator directed banks and PSBs to comply with the directive and all other payment system regulations.
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According to the CBN, “The Central Bank of Nigeria has noticed the inherent problems associated with the processing of bulk transfers by banks and payment service providers. Currently, originating banks and PSPs pass a single debit entry through the initiating customers’ account and multiple credits to beneficiaries without adequate records of the credit entries in their system. This distorts the audit trail and hampers transparency.
“In order to address this challenge, the CBN hereby directs that all end-to-end bulk payments or transfers shall henceforth be processed on the platforms of banks or PSPs for their customers with a detailed breakdown of the accounts that receive the credits retained in the custody of the sender’s banks.”
The central Bank further reiterated that all banks and PSPs are required to ensure full compliance with the requirement and all other payment system regulations.
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