CBN removes fixed interest rate on credit cards

Central Bank of Nigeria (CBN) yesterday removed fixed interest rate on credit cards. This is in furtherance of its efforts at strengthening the payments system.

In a circular to all banks and other financial institutions signed by Dipo Fatokun, director, banking and payments system department, the CBN issued a directive on discontinuation of actual address verification in account opening for customers with Bank Verification Number (BVN).

The circular also directed banks and other financial institutions to begin to embed BVN biometric data in payment cards issued henceforth, to facilitate off-line BVN verification and biometric-based customer authentication on such payment devices as ATM, PoS, Kiosks, among others.

Also, the CBN issued a directive on the approval of BVN watch-listing modalities and release of necessary Credit Risk Management System (CRMS) data, to facilitate its use for enriching BVN watch-list.

According to the CBN, savings customers with BVN can now deposit cheques of not more than N2 million in value into their account, per customer, per day.