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Banks and PSP can now process bulk payments on their platform - CBN

CBN directs banks, PSPs  to process bulk payments on their platforms

Banks and Payments Service Providers can now process payments on their platforms for their customers a CBN circular revealed. This was disclosed in a circular to the banks titled: “Disaggregation of Bulk Payments”, signed by Director, Payments System Management Department, CBN, Musa Jimoh,

However, there is a clause. Banks and PSP must provide a detailed breakdown of the accounts that receive the credit retained in the custody of the sender's bank.

According to the circular, “The CBN has noticed the inherent problems associated with the processing of bulk transfers by banks and payment service providers (PSPs).

Currently, originating banks and PSPs pass a single debit entry through the initiating customer’s account and multiple credits to beneficiaries without adequate records of the credit entries in their system. This distorts the audit trail and hampers transparency.

In order to address this challenge, the CBN hereby directs that all end-to-end bulk payments or transfers shall henceforth be processed on the platforms of banks or PSPs for their customers with a detailed breakdown of the accounts that receive the credits retained in the custody of the sender’s bank.

All banks and PSPs are required to ensure full compliance with this requirement and all other payment system regulations.”

Nigeria in focus

GDP: $432.294 billion in 2020 compared to $448.12 billion in 2019

Population: 206,139,587 in 2020 compared to 200,963,03 in 2019

GDP per capita: $2,097 in 2020 compared to $2,229 in 2019