The Central Bank of Nigeria (CBN) has instructed banks and Payment Service Providers (PSPs) to process all end-to-end bulk payments or transfers on its platform with a detailed breakdown of the receiving accounts.
This was contained in a memo signed by CBN’s Director, Payment System Management Department, Jimoh Musa, on Wednesday.
According to the memo, the directive is in a bid to ensure transparency and clarity for auditing within the banking system.
It read: “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.”
“All banks and PSPs are required to ensure full compliance with this requirement and all other payment system regulations.”
