CBN Issues Statements of Payment Finality for the Nigerian Payments Schemes


  Read (1149)
CBN Issues Statements of Payment Finality for the Nigerian Payments Schemes

Tuesday, July 25,  2017 3:15PM/CBN

In line with the overall objective of the Nigerian Payments System Vision 2020 (PSV2020) project aimed at creating an electronic payments infrastructure that is nationally utilized and internationally recognized, the Central Bank of Nigeria hereby issue the statements of payment finality for the four payment schemes (RTGS, Card, Mobile and ACH, Cheque & Instant Payments) in Nigeria.

This defines the specific point at which payments are deemed to be final and irrevocable and to ensure that no payment system would invoke the principle of “unwind”.


General note

a.     
The definition for Payment Finality for each payment scheme is without prejudice to the dispute resolution mechanism, in accordance with the rules and regulations governing the respective schemes.

b.     
The statements and operational implications will be incorporated into the respective scheme’s rules.


 
1.      RTGS PAYMENTS SCHEME

VARIOUS TYPES OF TRANSFER

POINT OF PAYMENT FINALITY

Inter-Bank Funds Transfer

At the point when the sending bank’s account is debited and the receiving bank’s account is credited, payment/settlement is final and cannot be revoked.

Third-Party (Customer) Funds Transfer

At the point when the sending bank’s account is debited and the receiving bank’s account is credited, payment/settlement is final and cannot be revoked.

Net Settlement

At the point when debited/credited, payment/settlement is final and cannot be revoked.

Settlement & Payment Finality happen at the same time on the RTGS System 

2.     MOBILE PAYMENTS SCHEME

TRANSACTION WITHIN THE MOBILE PAYMENTS SCHEME

POINT OF PAYMENT FINALITY

Mobile Money Operator (MMO) to MMO/Bank Transactions

This is at the point when the switch successfully transmits the authorization message from the sending MMO to the beneficiary MMO/ Bank.

International Remittance to MMO

Payment is FINAL, when the MMO system credits the customer’s wallet

Over the Counter/Walk-in Transactions

When NIBSS confirms and processes the transaction and sends notifiations to both the sending and beneficiary MMOs.

Online Payments

A confirmation message from the Switch to the beneficiary bank confers finality of transactions.

On the Mobile Payments Scheme, once payment is confirmed, settlement must be guaranteed.
 

3.     ACH, CHEQUE & INSTANT PAYMENTS SCHEME

VARIOUS TYPES OF TRANSACTIONS

POINT OF PAYMENT Finality Evidence

POINT OF PAYMENT FINALITY

CHEQUE AND ACH DEBIT

Payment finality occurs at 10pm on day T+1 for all cleared instruments

Clearing Session Closes

(Note: A returned cheque or ACH debit will ALWAYS result as a separate payment instruction but is both a debit and reversing credit to the payer’s account)

ACH CREDIT

Payment Finality occurs when Receiving Bank credits beneficiary’s account

Clearing Session Closes

(Note: A returned payment will ALWAYS result as a separate payment instruction)

INSTANT PAYMENT

Payment is considered final and irrevocable when presenting Bank communicates transaction status to the customer who initiated the transfer/payment request

At the pint when IP Switch sends authorization response to presenting bank


4.     CARD PAYMENTS SCHEME

TRANSACTION WITHIN THE CARD SCHEME

POINT OF PAYMENT FINALITY

P.O.S Purchases

Payment is considered final and irrevocable when the issuer AUTHORISES the transaction. At this point, the transaction cannot be unwound and settlement MUST occur.

Electronic Bill Payments

(and other Card NOT present transactions)

Payment is considered final and irrevocable when the issuer AUTHORISES the transaction. At this point, the transaction cannot be unwound and settlement MUST occur.


 

Related News 
1.       SEC Directs CMOs & Public Limited Companies to Comply with Executive Order No.004 of 2017 on VAIDS
2.      SEC Issues Ultimatum to CMO’s, Experts and Professionals On Sponsored Individuals and Compliance Off
3.      Treasury Releases Report To Reform US Financial System
4.      Implementation Monitoring of the PFMI: Fourth Update to Level 1 Assessment Report
5.      IOSCO Consults on Recommendations and Good Practices in Liquidity Risk Mgt of Funds
6.      International Committees Complete the April 2015 Workplan
7.    BCBS and IOSCO Propose Criteria for Identifying Simple, Transparent and Comparable Short-term Securi
8.     Exposure Draft on the Regulatory Framework for BVN Operations & Watch-List for the Financial System
9.      Basel III Implementation: Basel Committee Reports To G20 Leaders
10.  SEC Extends Deadline on Issuance of Warrants & Free e-Dividend Registration Exercise to Dec 31 2017
11.   Investment And Growth In Advanced Economies
12.  Remarks To The SEC Investor Advisory Committee
13.  Etisalat vs Banks: CBN, NCC Intervene to Save Jobs, Asset Stripping



Tags: Securities and Exchange Commission ,  CMO ,  Capital Market Operators ,  Public Limited Companies, 



Comment With Your Facebook or Yahoo! ID

News from the same Category

PMI Reading Rose to 58.5 Points in August from 56.3 Points in July
#NES23 will address issues around employment, productivity and opportunities-Udoma
Alarm Bells As Current Account Surplus Narrows Again
Lagos State Has the Highest Foreign and Domestic Debts as at June 2017
Make Your Research Relevant to National Development, Udoma Charges NISER
September 2017 Headline Inflation Projected at 16.3% YoY

Latest News

Federal Reserve issues FOMC statement
Nigeria Immigration Service Bans Cash Payment at Passport Offices
FirstBank’s Customer Wins Grand Prize in Western Union Mega Promo
Volatile Oil Prices in August
Stamp Duties on Bank Deposits and Transfers: Are There Unresolved Issues?
Naira Depreciated To N370-$ Mid-August in the Parallel Market
Our Network

Proshare Network
Content partnership

News & Events

News
Articles
Special Reports
Events Calendar

The Regulators
BPE
CAC
CBN
FIRS
FMBN
FMDQ

More

Policy

Privacy Policy
Disclaimer
Terms of use

Information

About us
Advertise with Us
Partner With Us
Contact Us
The Regulator is a market service provided by Proshare Nigeria Limited.

The Upper Room, Plot 1, Lekan Asuni Close, Off Toyin Omotosho Street, Omole Phase II, Isheri LGA, P.O. Box 18782, Ikeja, Lagos, Nigeria. Telephone 0700 PROSHARE (0700- 77674273). Registered in Nigeria. We may record and/or monitor telephone calls or intercept other telecommunications between us. This is to protect both of us and for training purposes.