CBN asks banks to accept indemnity for 'highly secured' online transfers

Nigerian banks are to accept indemnity for highly secured funds above N1 million for individuals and N10 million for corporates, the Central Bank of Nigeria (CBN) said in a circular.

Indemnity refers to a contractual agreement between two parties, where one party agrees to pay for potential losses or damages caused by another party.

The circular on ‘review of operations of Nigeria Inter-Bank Settlement System instant payments system and other electronic payment options with similar features’ was signed by Musa Jimoh, director, payment system management department at CBN.

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The circular directed the banks to provide customers with the option of electronic or paper indemnity based on the customer’s preference.

According to the circular, banks are to implement electronic indemnity with stricter controls requiring biometric verification of identity.

The CBN said banks should adhere to multiple-factor authentication for highly secured online funds transfers.

“Inform and educate customers on the use of indemnity to increase transaction limits where applicable. Please be guided accordingly,” the circular said.

Hope Moses-Ashike

Hope Moses-Ashike is an Associate Editor, Banking and Finance, with more than a decade of experience reporting on Nigeria’s financial system and broader economy. She closely tracks market movements, monetary policy decisions, company disclosures, regulatory actions, economic indicators, and global developments, and interprets what they mean for businesses, investors, policymakers, and households. Her reporting helps readers understand complex issues such as inflation trends, foreign exchange market dynamics, interest rate decisions, bank performance, and investment risks. She also covers major international events and periodically travels to Washington, D.C., to report on the World Bank/IMF Spring and Annual Meetings. Her dedication to financial journalism has earned her multiple recognitions and invitations to high-level professional development programmes. She is an alumna of the International Visitors Leadership Programme (IVLP) in the United States and holds an Advanced Financial Journalism Certificate from the Press Association Training in London, UK. Her other notable achievements include completing the Lagos Business School CMC Programme, the Bloomberg Media Africa Initiative Programme, and a Master Class in Journalism at Rhodes University in South Africa.