The Central Bank of Nigeria (CBN) has directed banks and Payment Service Providers (PSPs) to accept indemnities from customers for highly secured online funds transfers of N1m and above for individual customers and N10m for corporate customers. This directive was issued in a document titled, “Circular on the Review of Operations of the NIBSS Instant Payments System and other Electronic Payment Options with Similar Features”, which was posted on Thursday on CBN’s official website.
Indemnity simply means security or protection against financial liability, in this instance; it means the bank would not be held responsible for any liability arising from online funds transfer.
According to the document, “Banks are hereby required to comply with the following:
“Accept indemnity 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 and inform and educate customers on the use of indemnity to increase transaction limits where possible”.
