The Central Bank of Nigeria (CBN) has directed commercial banks and Payment Service Providers (PSPs) to henceforth take steps to improve on all bulk payments and transfers systems to ensure transparency.
Mr Jimoh Musa, CBN’s Director, Payment System Management Department, gave the directive on Monday, in a memo addressed to banks and PSPs.
Musa urged the banks and PSPs to ensure that such bulk payments and transfers were processed on the platforms of banks or PSPs for their customers with detailed breakdown of the receiving accounts.
“The CBN has noticed the inherent problems associated with the processing of bulk transfers by banks and PSPs.
“Currently, originating banks and PSPs pass a single debit entry through the initiating customers account and multiple entries to beneficiaries without adequate record of credit entry in their system.
“This distorts the audit trials and hampers transparency,’’ he said.
He urged the banks and PSPs to, henceforth, ensure that all such bulk payments or transfers were processed on the platforms of banks or PSPs.
He directed them to ensure that such transaction contained detailed breakdown of the accounts that receive the credits retained in the custody of the sender’s banks.
“All banks and PSPs are required to ensure full compliance with this requirement and all other payment system regulations,’’ he said.