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Violation Of Payment System Rules: CBN Vows To Sanction Erring Financial Institutions

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The Central Bank of Nigeria (CBN) has threatened to impose N10,000 daily fine on banks and other electronic payment service providers that fail to renew their operating licence within the regulatory deadline.

Director, Banking and Payment System Department (BPSD), CBN, Mr. Dipo Fatokun gave this warning in a circular titled “Re: Sanctions on erring banks/e-payment service providers for infractions of payment system rules and regulations”.

The statement reads:

Please be informed that operators in the National Payment System shall be sanctioned with a penalty of N10,000 per day for as long as the infractions below subsist:

  • Failure to apply for renewal of an operating licence three months before the date of expiration of the license.
  • Failure to regularise and respond to observations/exceptions noted by the Bank in the course of processing and application for the renewal of an operating license within three weeks.

The circular added that the provision in the circular will become effective from April 1st,2018.

In its effort to strengthen the oversight of the payments system, the Central Bank of Nigeria established the Payments System Policy and Oversight Office, which will effectively monitor existing and planned payments system. The Payment System Policy and Oversight Office activities are:

To perform monitoring and oversight functions (onsite and offsite) on Payment system in Nigeria with particular reference to functions of Switching Companies,

  • Mobile Payment Operators (MPO)
  • Payment Terminals Service Providers (PTSP)
  • Card Scheme Operators and Payment Terminal Service Aggregator (PTSA)

and other Payment Service Providers.

The Bank has also issued various licenses to Payment Service Providers for operation in the Nigerian Payments EcoSystem.

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I'm a proactive and smart problem solver. An accountant by profession, social media savvy and passionate about business development. Find me at the corner where technology meets social impact | Akintunde Oyedokun is a Staff Reporter at TopNaija.ng