The Central Bank of Nigeria (CBN) has said it would sanction banks who fail to reverse customers failed Nigerian Instant Payment transaction in a day.
According to the CBN, the banks would get a fine of N10,000 if such transactions are not reversed based on the complaint of the sender and/or beneficiary.
The apex bank in a circular issued to banks and other financial institutions noted that delayed application of inward NIP into beneficiary’s accounts beyond four minutes would attract a penalty fee of N10,000 per item.
“The sanctions above and any other prescribed in the Nigeria Bankers’ Clearing System rules or any amendment thereto, shall apply,” the CBN said.
According to the CBN, an electronic funds transfer or a NIP occurs between two distinct entities when a delivery from the sending entity to the receiving entity takes place within one minute (60 seconds).
It noted that a payments system where delivery to the receiving entity occurs beyond one minute is considered to be an ACH system.