The issue of delayed and unsuccessful transactions on interbank funds transfers is not yet fully resolved and lawmakers are beginning to pay attention to it.
Although Nigerian banks have invested heavily in payment infrastructure to alleviate some of these hassles faced by customers – it has seen many successes in recent times, however, the challenge still remains.
In 2019, the Central Bank of Nigeria (CBN) had to issue a circular to all banks saying that any failed instant payment transaction not reversed to the customer’s account within 24 hours of a complaint from the sender will result in a fine of 10,000 N. .
Now lawmakers are considering the issue. Members of the House of Representatives on Wednesday urged the CBN to address delays resulting from instant (interbank) electronic funds transfer services in Nigeria.
Mohammed Bello, Legislator, All Progressives Congress (APC) of Kano in Plenary presented a motion pursuant to Sections 2(d), 33(I)(b) and 47(2) of the CBN Act, 2007, that the CBN is saddled with the duty and responsibility to promote a sound financial system in Nigeria.
The representative said that customers of financial institutions across the country have no adequate way to file complaints and get immediate resolutions on failed E-Funds transactions that occur on weekends and holidays.
According to him, the CBN, through a circular dated September 13, 2018, issued regulations on Instant Electronic Funds Transfer (Interbank) Services targeting various payment platforms seeking to provide the service in Nigeria.
“The circular was addressed to all depository banks, micro-finance banks, other financial institutions, mobile money operators, development financial institutions, payment service providers and other stakeholders within financial institutions.
“The said circular was launched to limit the problems of delayed or failed funds transfer, and the regulation also provided for sanctions against banks and other financial institutions in the event of failure or delay in electronic funds transfer.
“Concerned that regulations are not being adhered to by banks and other financial institutions, as issues regarding failed and delayed transfers are still very pronounced in Nigeria.
“Also concerned that the delays caused by sending and receiving entities with respect to electronic funds transfer services have resulted in untold misery for bank customers who rely on them in times of emergency,” did he declare.