CBN Sets N15,000 Limit on Transactions For QR Codes, Wallets, Other Contactless Payments
- The Central Bank of Nigeria has issued a new guideline on contactless payments in Nigeria
- The bank placed a transaction limit of N15,000 on contactless payments involving wallets and QR codes
- CBN said any transaction above N50,000 via contactless payments should be accompanied by biometrics and other verifications
The Central Bank of Nigeria has released a guideline limiting contactless payments in Nigeria.
The CBN disclosed this on Tuesday, June 27, 2023, in two circulars signed by the CBN’s Director, Payments System Management Department, Musa Jimoh, and seen by Legit.ng.
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CBN asks banks, others to limit contactless payments to N15,000
The first circular contains a raft of guidelines for banks and other financial institutions and payment service providers on contactless payments,
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It read in part:
“The Central Bank of Nigeria, in furtherance of its efforts to standardize operations in the payments system while encouraging the deployment of innovative products and sustaining the financial system stability, developed the Guidelines for Contactless Payments in Nigeria.
“Contactless payment, which involves the consummation of financial transactions without physical contact between the payer and the acquiring devices, has been identified as an innovative payment option for the safe and efficient conduct of low-value and large-volume payments.
“The Guidelines was conceived to ensure that participants in contactless payments implement appropriate risk management processes and measures while keeping to best relevant standards.”
CBN places N50,000 daily transaction limit on contactless payments
The apex bank noted that all banks, other financial institutions, and payment service providers are mandated to ensure stringent compliance with the guidelines.
In the second circular, the apex bank said there is a N15,000 transaction limit on contactless payments via accounts and wallets in the country.
CBN added that there is a cumulative daily limit of N50,000, stating that for any transaction above the N50,000 limit, the bank will demand biometrics and other verification.
“Following the issuance of the Guidelines on Contactless Payments in Nigeria and cognizance of the risks associated with contactless payments, the Bank defines transaction limits above which verification and authorisation are required.”
“Higher-value contactless payments are transactions exceeding the above-stated limits and require appropriate verification and authorisation. For these transactions, existing KYC requirements and limitations on the electronic payment channels shall apply.
“Limits above this stipulated daily cumulative limit shall be conducted using contact-based technology,” CBN said.
CBN introduces new changes
In the last seven days, the CBN has issued a raft of changes in the financial sector to strengthen transactions in the country.
In the latest directive to banks and financial institutions, the apex bank asked them to obtain the social media handles of customers for additional due diligence and Know Your Customers (KYC).
It also asked financial institutions to monitor politically exposed persons to avoid money laundering and corruption.
CBN orders Access, Zenith, other banks to demand social media handles of customers
Legit.ng reported that the Central Bank of Nigeria had asked all financial institutions, including commercial banks, to collect and verify customers' social media handles as part of their Know Your Customer (KYC) requirements.
The new directive applies to individuals and legal entities' customers as captured in CBN's Customer Due Diligence Regulations for 2023, obtained by Legit.ng.
The CBN hopes that the social media handles will enhance financial institutions' accuracy and depth of customer identification.
Source: Legit.ng
