In recent circular sent to commercial banks, the Central Bank of Nigeria has ordered banks and Payment Service Providers to accept indemnity from customers for highly secured online funds transfers.
Indemnity refers to compensation paid for damages or loss, similar to an insurance policy or contract.
It stated this in a circular signed by the Director, Payments System Management Department, Musa Jimoh, with the reference number: PSM/DIR/PUB/CIR/01/006, titled ‘Circular on the review of operations of the NIBSS Instant Payments System and other electronic payment options with similar features’, which was released on Thursday.
The circular stated that “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 identify.
“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.”
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