Banks to pay N10,000 fine for every failed electronic funds transfer

The Central Bank of Nigeria (CBN), has disclosed its commitment to fine Nigerian financial institutions for any failed Instant Payment transaction not reversed into the customer’s account within 24 hours, based on complaint of the sender and/or beneficiary.

The apex bank said any failure will attract a fine of N10,000. CBN made this known in a ‘Circular on the regulation on instant inter-bank electronic funds transfer services in Nigeria’, issued to all Deposit Money Banks, microfinance banks, other financial institutions, mobile money operators, development finance institutions, payment service providers and other stakeholders.

More so, CBN warned 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.” CBN maintained.

In recent times, the apex bank has revived the banking sector by penalising financial institutions for violating rules.

Recall that CBN, in August, fined four banks a total of ₦5.86 billion for breaching Nigeria’s extant laws and forex rules when they facilitated illegal repatriation of funds to South Africa on behalf of MTN.

The disclosure was contained in a press statement obtained by Nairametrics; a snippet of which had earlier been tweeted on CBN’s official Twitter handle.

Stanbic IBTC Holdings, in a notice sent to the Nigerian Stock Exchange (NSE) stated that theCBN deducted N1.88 billion from the accounts of its banking subsidiary Stanbic IBTC Bank PLC.

This pertains to the fine imposed on the bank in relation to the remittance of foreign exchange on the basis of certain capital importation certificates issued to MTN Nigeria Communications Limited.

Stanbic IBTC maintained its position on the matter, which is the fact that the Bank has done nothing illegal and accordingly the Bank will continue to provide CBN with documents and details in support of our contention that our actions in relation to these transactions were not illegal.

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Author: see naija

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