THE Central Bank of Nigeria (CBN) has warned Deposit Money Banks (DMBs) and Other Financial Institutions (OFIs) against use of electronic payment solutions that are not approved by the apex banking sector regulator.
In the guidelines for the regulation of electronic payments and collections for public and private sectors in the country, CBN stated that violations of the above will attract penalty of N2 million for DMB and N1 million for OFIs on every repeated occurrence.
Therefore, lenders should ensure that third party end-to-end e-payment solution used by the bank/financial service provider is approved by CBN.
The regulation is a revision of the Guidelines on Electronic Payment of Salaries, Pensions, Suppliers and Taxes in Nigeria (2014).
The CBN also introduced other fines for other forms of infractions.
The apex bank said in the regulation on its website that it was intended to guide the end-to-end electronic payment of salaries, pensions and other remittances, suppliers and revenue collections in Nigeria.
“The objective of the regulation is to fully align with the core objectives of the National Payments System Vision 2020.
“It is to ensure the availability of safe, effective and efficient mechanisms for conveniently making and receiving all types of payments from any location and at any time through multiple electronic channels.
“This will reduce the time and costs of transactions, minimise leakages in revenue receipts and at the same time provide reliable audit trails, thereby ensuring that the Nigerian Payments System aligns with international best practices,” it said.
The CBN noted that the regulation was set out to provide all stakeholders with the operational procedures that guide end-to-end electronic payment for the public and private Sector.
It states that the regulation applies to all CBN regulated entities operating in Nigeria.
The apex bank also mandated adoption, implementation and compliance with the directives on end-to-end electronic payments of all forms of salaries, pensions & other remittances, suppliers, revenue collections.
“This Regulation applies to all CBN regulated entities operating in Nigeria and mandates adoption, implementation and compliance with the directives on End-to-end electronic payments of all forms of salaries, pensions & other remittances, suppliers, revenue collections including but not limited to taxes,levies, penalties, recoveries, assessments, and the disbursement of funds for social programs payments bills, honorarium, scholarships, allowances, etc. herein referred to collectively as ‘payments and collections,’” it read in part.Read Full Story