- The Nigeria Interbank Settlement System (NIBBS) has asked banks to remove non-deposit financial institutions from instant fund transfer
- NIBBS issued the directives in a circular to financial institutions saying the platforms can only process outflows to banks
- The fund transfer channels include USSD, NIP, Mobile banking apps, ATMs, and PoS
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A circular from the Nigeria Interbank Settlement System (NIBBS) has instructed commercial banks to disconnect every non-deposit financial institution from NIBBS Instant Payment (NIP) fund transfer channels.
The affected financial institutions include switching firms, payment solutions service providers, and super agents.
Top NIP transfer channels
The NIP fund transfer channels include USSD, Mobile banking apps, PoS, ATMs, and web and internet platforms.
NIBBS said the banks violate CBN guidelines on funds transfer channels for electronic payment of salaries and others.
The NIBBS circular stated that while these financial institutions would be barred from receiving funds, they would be allowed to process payments into banks
CBN license allows them to process outflows to banks
Punch reports that to operate in Nigeria, operators must obtain at least one of the following licenses from the Central Bank of Nigeria (CBN): Switching and Processing, Mobile Money Operations, Payment Solutions Services, and Sandbox.
The CBN said only Mobile Money Operators can hold customer funds.
Nigerians abandon bank apps, rush payment platforms amid transaction glitches
Legit.ng reported since the beginning of the Central Bank of Nigeria (CBN)'s cashless policy, Nigerians have expressed utter disappointment and disgust with their financial institutions, which they hitherto relied on for seamless transactions.
It seems most bank platforms and infrastructure was not built for the heavy usage that the naira redesign policy and cash scarcity have created.
Nevertheless, the transaction glitches experienced by bank customers have benefitted other platforms, which had tough times wooing customers before now. It is common to see payment platforms such as Opay, PalmPay, PiggyVest, and others trending on social media for the best reasons. Nigerians, in their numbers, say they have chosen them as the last-minute resort due to disappointments from the conventional banks.