The Central Bank of Nigeria, CBN, has advised banks and Payment Services Providers, PSPs, to henceforth dis-aggregate bulk payment saying that it noticed some problem with the method.
Bulk payments involve passing a single debit entry through the initiating customer’s account and multiple credits to beneficiaries. In addition to that, banks and PSPs do not collect adequate records of the credit entries in their system.
The statement further explains that this method “distorts the audit trial and hampers transparency.”
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The CBN said that in order to address this challenge, it is directing banks and PSPs to process all end-to-end bulk payment or transfers for customers on their platforms with a detailed breakdown of the accounts that receive the credits retained in the custody of the sender’s bank.
The bulk payments system is a cash-based system used by banks and PSPs to send make multiple transfers especially in situations involving payroll.
The directive from the CBN will simplify the time-consuming task associated with bulk payments in banks as well as enable more transparency.
More so, the CBN wants banks to establish a recording system for the bulk transactions for later consultations.