CBN amends guidelines on transaction switching in Nigeria

In its efforts to strengthen electronic payments system landscape in Nigeria, the Central Bank of Nigeria (CBN) has adopted international best practice to guide transaction switching in Nigeria.

According to circular directed to all banks, mobile money operators and payments services providers posted on apex bank website signed by its Director, Banking and Payment System Department, Dipo Fatokun, said NCS shall be run in accordance with international best practice.

Fatokun said CBN took cognizance of the need for a competitive environment while promoting shared services and innovation.

He stressed that, the CBN in ensuring that the guidelines on Transaction Switching Services in Nigeria support the objective for payments system efficiency and financial inclusion, issued the circular to effect the changes in the guidelines.

“Section 2.6.3 which stipulates that “the NCS shall not own or promote any card business or retails products and shall be run in accordance with international best practice” is hereby amended to read as follow: “The NCS shall be run in accordance with international best practice”., Fatokun stated.

Fatokun however mandated Nigeria Inter-Bank Settlement System Plc to communicate the Application Programing Interface (API) and other specifications of all its products to all banks and other licensed operators, including switches, mobile money operators and payments services providers, immediately.