Cbn new policy on money transfer
You're referring to the Central Bank of Nigeria's (CBN) new policy on money transfer!
On July 22, 2022, the CBN introduced a new policy aimed at promoting the use of digital payment channels and reducing the reliance on cash transactions. The policy, known as the "CBN Digital Payment Policy," has several key provisions that affect money transfer in Nigeria. Here are some of the main changes:
- Increased limits for digital transactions: The CBN has increased the daily limits for digital transactions, such as mobile money transfers, from N50,000 to N100,000. This is expected to encourage more people to use digital payment channels.
- Reduced cash handling: The policy encourages financial institutions to reduce their reliance on cash handling and instead use digital payment channels. This is expected to reduce the risk of cash-related fraud and improve the overall efficiency of transactions.
- Increased use of digital wallets: The CBN is promoting the use of digital wallets, such as mobile money accounts, to facilitate transactions. This is expected to increase financial inclusion and reduce the reliance on cash.
- Improved security measures: The policy requires financial institutions to implement additional security measures to protect digital transactions, such as two-factor authentication and encryption.
- Increased transparency: The policy requires financial institutions to provide more transparency in their transactions, including the disclosure of fees and charges associated with digital transactions.
- Penalties for non-compliance: The CBN has introduced penalties for financial institutions that fail to comply with the policy, including fines and suspension of licenses.
Overall, the CBN's new policy on money transfer is aimed at promoting a more efficient, secure, and transparent payment system in Nigeria. It is expected to reduce the reliance on cash, increase financial inclusion, and improve the overall efficiency of transactions.