Godwin Emefiele, CBN Governor
Godwin Emefiele, CBN Governor

The Central Bank of Nigeria (CBN) has directed all Deposit Money Banks, Micro Finance banks, key stakeholders in the mobile money sector to resolve all Electronic Fund Transactions issues within three- working days or face sanctions.

The new directive by CBN also directed DMBs, others to report within five working days any aggrieved entity of the failure to resolve the dispute so as to minimize customer pain.

The circular signed by Director, Banking and Payment System Department, Mr. Dipo Fatokun, stated, “Where the Sending and Receiving entities fail to agree, the aggrieved entity shall report to the Director, Consumer Protection Department, CBN within five working days of the failure to resolve the dispute so as to minimize customer pain.”

The circular stated further that the CBN in furtherance of its mandate for the development of electronic payments system in Nigeria, hereby issues the Regulation on Instant (inter-Bank) Electronic Funds Transfer Services in Nigeria.”

It added that effective date of the regulation is October 2, 2018.

According to the circular, the CBN’s regulation covers Instant Electronic Funds Transfer Services in Nigeria on various payment channels and any payment platform that seeks to provide Instant Electronic Funds Transfer Services in Nigeria.

Explaining on wrong transfer due to bank error, the newly circular by CBN stated that, “Where a Sending Entity erroneously sends value contrary to customer’s instructions due to wrong account number, wrong amount, duplication, etc to a Receiving Entity and requests the reversal in writing within 14 working days of the transaction, the Receiving Entity shall oblige within one business day without recourse to the customer (beneficiary) of the Receiving Entity provided funds are available.

“An automatic indemnity shall be inferred against the Sending Entity making the reversal request.

“Where funds are not available, the Receiving Entity shall immediately notify its customer that the account was wrongly credited and provide proof of such notification to the Sending Entity.

“The Receiving Entity shall notify the customer the consequences of not funding the account within 24 hours, which includes watch-listing in the banking industry, Credit Bureau and reporting to law enforcement agencies.”

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