BY Oluwatoyin Bayagbon
The Central Bank of Nigeria (CBN) has revised the clearing system rules for deposit money banks in the country.
The revision will kick off on September 1, the apex bank said on Wednesday.
Dipo Fatokun, director, banking and payments system, CBN, said the revision is aimed at the development of electronic payments system in the country.
“A member bank will be suspended from participating in any clearing session if an amount of clearing collateral that has been utilised to fund an account is not replaced within two business days, or if a collateral so discounted is insufficient, or if a bank overdraws its settlement account maintained with the CBN for three consecutive working days,” the circular read.
“A member bank can also be suspended if it persistently overdraws its account with its settlement bank and the settlement bank communicates its intention to stop settling for such a non-settlement bank to the CBN and Nigeria Inter-Bank Settlement System Plc, or if a bank fails to provide the requisite infrastructure to enable electronic exchange of eligible payment instrument, or fails to maintain adequate collateral with either the CBN (in the case of a settlement bank) or its settlement bank (in the case of a non-settlement bank) in accordance to section six of these rules.”
The CBN also said all clearing instruments returned unpaid “shall now bear the appropriate returned reason code”.
Failure to do so will attract a fine of N250 per instrument.
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