Nigerian banks to be fined $28 for every failed or delayed electronic money transfer

The Central Bank of Nigeria (CBN) has announced that from October 2, financial services providers in Nigeria will start paying a fine of N10,000 ($27.5) for every failed instant payment (NIP) to other banks not reversed into customer’s account within 24 hours. Another fine of N10,000 will also be charged against service providers found culpable for delaying application of inward NIP into beneficiary’s accounts beyond 4 minutes.

In a document published on its website, the CBN highlighted the rights and responsibilities of an instant electronic funds transfer service provider, which will help users of the services better understand their rights and take necessary actions when they experience poor services.

The Bank also listed what is expected of customers, especially in cases of erroneous credit, where it expects customers to notify their banks.

However, customers who withdraw such funds and do not refund their accounts within 24 hours, would be watchlisted in the Nigerian banking industry, Credit Bureau and reported to law enforcement agencies.

In Nigeria, banks charge customers N50 (plus VAT of N2.50) for inter-bank transfers. Inter-bank transfers are handled by the Nigeria Inter-Bank Settlement System (NIBSS) Plc., which is owned by all licensed banks in the country, including the CBN.