Commercial Banks to disconnect non-deposit financial institutions from transfer list

Commercial Banks have been asked to disconnect Switches, Payment Solution Service Providers, and Super Agents from the Nigeria Inter-Bank Settlement System Instant Payment Outwards System.

According to a recent a circular released by the Nigeria Inter-Bank Settlement System (NIBSS), the listing of non-deposit-taking financial institutions as beneficiaries contravenes the Central Bank of Nigeria guideline on electronic payment.

NIBSS stated thus:

 “This is to bring to your attention that listing non-deposit-taking financial institutions such as Switching Companies (Switches), Payment Solution Service Providers (PSSPs) and Super Agents as beneficiary institutions on your NIP funds transfer channels contravenes the CBN Guidelines on Electronic Payment of Salaries, Pensions, Suppliers, and Taxes in Nigeria dated February 2014.”

For clarity, Switches, PSSPs, and SAs may process outward transfers as inflows to banks, but are not to receive inflows as their licences do not permit them to hold customers’ funds.”

 “Another regulatory advice in this regard is the circular with the caption ‘Permissible Services and Products of PSSP Operation in Nigeria’, Ref: BPD/DIR/GEN/CIR/05/004 dated May 11, 2018. Consequent on the above, kindly delist all Switches, PSSPs, and SAs from your NIP Outward Transfer channels only (not inwards).”

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