How CBN Plans To Regulate Electronic Payments, Collections

By Ikenga Chronicles September 11, 2019

How CBN Plans To Regulate Electronic Payments, Collections

The Central Bank of Nigeria (CBN) on Tuesday, released plans to regulate electronic payments and collections for public and private sectors of the economy.

This is an upgrade of the Guidelines on Electronic Payment of Salaries, Pensions, Suppliers and Taxes in Nigeria (2014).

The CBN plans to introduce a fine of N2million for Deposit Money Banks (DMBs) on third party e-payment solution not approved by it on every repeated occurrence.

It also introduced penalty of N1million for Other Financial Institutions (OFIs) on third party e-payment solution not endorsed by the apex bank.

“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 oftransactions, minimise leakages in revenue receipts and at the same time provide reliable audit trails, thereby ensuring that the Nigerian Payments System aligns with international bestpractices,” it said.

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.