CBN orders banks, PSBs to separate bulk payments
CBN orders banks, PSBs to separate bulk payments
The Central Bank of Nigeria (CBN) has directed banks and Payment Service Providers (PSBs) to separate all transactions that would normally categorised as bulk payment upon transition.
CBN, in a circular posted on its website yesterday signed by the Director, Payments System Management Department Musa Jimoh, stated that the directive is 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.
The apex bank said : “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.”
It further reiterated that all banks and PSPs are required to ensure full compliance with the requirement and all other payment system regulations.
