To promote transparency, the Central Bank of Nigeria (CBN) has urged commercial banks and Payment Service Providers (PSPs) in the country to strengthen their bulk payments and transfers systems.
The decision was issued by Mr Jimoh Musa, Director of the CBN’s Payment System Management Department, in a note to banks and PSPs on Monday.
Musa asked banks and payment service providers to ensure that such large-scale payments and transfers were processed for their customers on their systems, with a full breakdown of the receiving accounts.
“The CBN has become aware of the inherent problems that banks and PSPs face when processing bulk transfers.
“At the moment, originating banks and PSPs send a single debit entry through the initiating customer’s account and multiple entries to beneficiaries without keeping a sufficient record of credit entries in their system.
“This skews audit trials and reduces transparency,” he explained.
He told them to make sure the transaction included a detailed description of the accounts that would receive the credits held in the sender’s bank’s custody.
“All banks and payment service providers must ensure full compliance with this requirement, as well as all other payment system regulations,” he stated.