The Central Bank of Nigeria (CBN) will from October 2, 2018, start fining banks $27.5 for each failed instant payment to other banks not reversed to a customer’s account within 24 hours. In addition, CBN will fine financial institutions the same amount for delaying an application of an inward instant payment to a beneficiary’s account beyond four minutes. The directive applies to deposit money banks, microfinance banks, mobile money operators, payment service providers, and development finance institutions among other financial service providers. The central bank stated: “The sanctions above and any other prescribed in the Nigeria Bankers’ Clearing System rules or any amendment thereto, shall apply.” Nigeria Instant Payments (NIP) According to the central bank, an electronic money transfer or NIP takes place between two entities when a delivery from the sender to the recipient happens within one minute. If the delivery takes more than one minute, the service provider’s system is considered to be faulty. “Whenever a credit has been erroneously applied to the customer’s account with the Receiving Entity, the customer shall promptly notify the Receiving Entity and authorize the reversal of such erroneous credit,” the bank said. “Where the customer account is unfunded, the customer shall provide funds within 24 hours, failure to provide funds shall be a ground for watch-listing of the customer in the banking industry, Credit Bureau and reporting to law enforcement agencies.” CBN also said that when a sender erroneously sends funds contrary to the customer’s instructions, both parties should ask for a transaction reversal within 14 business days. Moreover, if funds are unavailable, the receiving institution should notify the customer and the sending entity that the account was incorrectly credited. The Central Bank of Nigeria recently ordered MTN and several banks to return funds it had illegally repatriated from the country. - Kenyan Wallstreet