Nigeria’s Central Bank Give New Indemnity Directive To Banks, Customers

The Central Bank of Nigeria has directed banks to accept indemnity from customers for highly secured online funds transfers above N1 million for individuals.

For corporate entities, indemnity will be accepted for transfers above N10 million, and both are subject to a maximum of N25 million (individual) and N250 million (corporate).

Indemnity is protection against loss or damage, especially in the form of an official written promise to pay for any losses or damage.

The apex bank made this known in a circular released on Thursday with the reference number: PSM/DIR/PUB/CIR/01/006, by Director, Payments System Management Department, Musa Jimoh.

The circular reads: “Further to the circular on the above reference BSP/DIR/GEN/CIR/01/011 and dated August 13, 2014, banks are hereby required to comply with the following:

“Accept indemnity from customers for highly secured online funds transfer above N1m for individual and N10m for corporate, subject to a maximum of N25m (individual) and N250m (corporate).

“Provide customers with the option of electronic or paper indemnity based on the customer’s preference.

“Implement electronic indemnity with stricter controls requiring biometric verification of identity.

“Adhere to multiple-factor authentication for highly secured online funds transfer.

“Inform and educate customers on the use of indemnity to increase transaction limits where possible.”

According to Sahara Reporters, the CBN released another guideline titled ‘Guidelines for the registration & operation of Bank Neutral Cash Hubs in Nigeria,’ to be established by registered (licensed) processing companies or Deposit Money Banks based on business needs.