DMBs to pay N2m on Third party E-payment solution not approved by CBN

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Story by Kayode Tokede

The Central Bank of Nigeria has said Deposit Money Banks (DMBs) are to pay N2million on third party end-to-end Electronic solution not approved by it on every repeat occurrence.

The CBN in its regulation for electronic payments and collections for public and private sectors in the country on Tuesday, also introduced penalty of N1 million for Other Financial Institutions (OFIs) on third party e-payment solution not endorsed by the apex bank.

The regulation by CBN is a revision of the Guidelines on Electronic Payment of Salaries, Pensions, Suppliers and Taxes in Nigeria (2014).

The CBN also introduced other fines for other forms of infractions.

According to the guidelines, DMBs, OFIs and Mobile Money Operator (MMO) are to ensure “consummation of all electronic payments within timelines stipulated by the CBN under extant Regulations or Guidelines on the electronic payment channel utilised.

“Provide quarterly report on end-to-end epayment of salaries, pensions, suppliers & taxes to the CBN by the stipulated deadlines.

“Provide monthly report to the CBN on reported complaints & resolution status.

“Maintain and publish details of a functional help desk/contact centres for receiving enquiries, complaints & providing feedback on reported e-payment issue as directed in the CBN Circular to DMBs, Discount Houses and OFIs to establish a Consumer Complaint Help Desk ref [FPR/DIR/CIR/GEN/01/020].

“Receiving bank to notify beneficiaries through SMS, email or any other automated channel with details of payment received.”

The apex bank said in the regulation on its website that it was intended to guide the end-to-end electronic payment of salaries, pensions and other remittances, suppliers and revenue collections in Nigeria.

“The objective of the regulation is to fully align with the core objectives of the National Payments System Vision 2020.

“It is to ensure the availability of safe, effective and efficient mechanisms for conveniently making and receiving all types of payments from any location and at any time through multiple electronic channels.

“This will reduce the time and costs of transactions, minimise leakages in revenue receipts and at the same time provide reliable audit trails, thereby ensuring that the Nigerian Payments System aligns with international best practices,” it said.

The guideline by CBN expected DMBs, OFIs and MMS to promote the adoption of end-to-end electronic payments by all stakeholders covered by this Regulation; provide payers and beneficiaries with appropriate accounts with DMBs, OFIs or any other approved channel for receiving payments such as mobile money/electronic wallet, subject to the CBN’s approved KYC limits, among others.

The CBN noted that the regulation was set out to provide all stakeholders with the operational procedures that guide end-to-end electronic payment for the public and private Sector.

It states that the regulation applies to all CBN regulated entities operating in Nigeria.

The apex bank also mandated adoption, implementation and compliance with the directives on end-to-end electronic payments of all forms of salaries, pensions & other remittances, suppliers, revenue collections.

It said that it was not limited to taxes and levies, among others.

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