The Central Bank of Nigeria (CBN) has warned Deposit Money Banks that that effective October 2, any Instant Payment (NIP) transaction not reversed into the customer’s account within 24 hours based on complaint of the sender and/or beneficiary will attract a fine of N10,000 on any defaulting bank.

According to a circular, signed by the apex bank’s Director of Banking and Payment System Department, Dipo Fatokun, the lenders were cautioned against the delayed application of inward NIP into beneficiary’s accounts beyond four minutes, as violations will attract a penalty fee of N10,000 per item.

In the ‘Circular on regulation on instant inter-bank electronic funds transfer services in Nigeria’, issued to Deposit Money Banks, microfinance banks, and other financial institutions’, the apex bank insisted that where a sending entity erroneously sent value contrary to the customer’s instructions due to wrong account number, wrong amount, duplication among others to a receiving entity and requested the reversal in writing within 14 working days of the transaction, the receiving entity should oblige within one business day without recourse to the customer (beneficiary) of the receiving entity provided funds were available.

The CBN stated further that an automatic indemnity would be inferred against the sending entity making the reversal request, it stated.

In addition, the apex bank stated that where funds were not available, the receiving entity should immediately notify its customer that the account was wrongly credited and provide proof of such notification to the sending entity.