Process bulk payments on platforms, CBN directs banks, PSPs 

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The Central Bank of Nigeria has directed banks and payment service providers (PSPs) to start the processing of end-to-end bulk payments or transfers on their platforms and to keep a breakdown of the accounts that get credits in the sender’s bank’s custody.

This was contained in a circular to the banks titled: “Disaggregation of Bulk Payments”, signed by Director, Payments System Management Department, CBN, Musa Jimoh.

The bulk payment mechanism now in use by banks and other payment providers, according to the apex bank, impedes transparency and audit trail.

The originating bank or PSP sends a single debit entry through the starting customer’s account and many credits to the beneficiary’s account in the present bulk payment system.

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.”

Recall that all commercial banks have been ordered by the Central Bank of Nigeria (CBN) to publish on their websites, the names, and Bank Verification Numbers (BVN) of customers who participate in fraudulent and unscrupulous tactics to obtain foreign exchange from banks.

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Francis Ogwo
The young and goal driven writer and cinematographer started his journalism as a print journalist in Kaduna in 2005 writing for Kaduna Chronicles Newspapers, Liberator Newspapers where he became the South Bureau Chief. In 2008, he moved into TV production with an employment into Siverbird Television and Rhythm Fm as a Correspondent. He got certified by Independent Television Producers Association of Nigeria(ITPAN) in 2009. After five years of hardwork and training, he was employed as Associate Producer, Moments With Mo and subsequently Producer, Playground on HipTV. Francis currently majors in documentaries and high profile scripts for news and movies. He is currently a Senior Contents Producer at News Central TV

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