By eyo Nsima

The Central Bank of Nigeria, CBN, has directed banks to ensure that end-to-end bulk payments or transfers are henceforth processed on the platforms of banks or payment service providers, PSPs for their customers with a detailed breakdown of the accounts that receive the credits.

In a circular – Disaggregation of Bulk Payments – obtained by The Daily, www.thedaily-ng.com, Director, Payments System Management Department, Musa Jimoh, stated: “The Central of Nigeria, CBN, 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 customers 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 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 banks.”

He added: “All banks and PSPs are required to ensure full compliance with this requirement and all other payment system regulations. Please be guided accordingly.”