• Tuesday, September 26, 2023
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CBN asks banks to accept indemnity for ‘highly secured’ online transfers

The CBN Files: The Spending (2)

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.