For extremely secure online financial transfers, bank customers will now be asked to produce indemnity.

The new directive was issued in a circular with the reference number: PSM/DIR/PUB/CIR/01/006,  issued by the Central Bank of Nigeria and signed by  Director, Payments System Management Department, Musa Jimoh.

The circular titled ‘Circular on the review of operations of the NIBSS Instant Payments System and other electronic payment options with similar features’ which was released on Thursday June 2, read;

“Further to the circular on the above reference BSP/DIR/GEN/CIR/01/011 and dated August 13, 2014, banks are hereby required to comply with the following:

“Accept indemnity from customers for highly secured online funds transfer above N1m for individual and N10m for corporate, subject to a maximum of N25m (individual) and N250m (corporate).

“Provide customers with the option of electronic or paper indemnity based on the customer’s preference.

“Implement electronic indemnity with stricter controls requiring biometric verification of identify.

“Adhere to multiple factor authentication for highly secured online funds transfer.

“Inform and educate customers on the use of indemnity to increase transaction limits where possible.”

The apex bank also issued ‘Guidelines for the registration and operation of Bank Neutral Cash Hubs in Nigeria,’ which stated that BNCHs were cash collecting hubs that may be formed by registered (licensed) processing companies or Deposit Money Banks based on business needs.

Hubs will be built in places with high levels of commercial activity and cash transactions, and they will serve as a platform for clients to make cash deposits and receive value regardless of which bank their account is with.

It added;

“This guideline aims to provide minimum standards and requirements for BNCH registration and operations for effective supervision.”

The BNCH was established with the primary goal of reducing the risks and costs borne by banks, merchants, and large cash handlers in the course of cash management activities, deepening financial inclusion, and leveraging shared services to improve cash management efficiency, according to the Central Bank.

The BNCH’s responsibilities include receiving naira-denominated deposits from individuals and businesses with large amounts of cash on behalf of financial institutions, disbursing naira-denominated withdrawals on behalf of financial institutions to individuals and businesses with large amounts of cash, and any other activities that the apex bank may permit.


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