NIGERIA:CBN Directs Banks, Others To Provide BVN On Court Order

With the presentation of a valid court order, deposit money banks, switches, mobile money operators, payment solution service providers, microfinance banks and others would be required to provide Bank Verification Number (BVN) information to whoever asks for it.

This was contained in a circular issued by the apex bank signed by its director, Banking and Payments Systems Department, Dipo Fatokun. The provision of the BVN would however be subject to the approval of the CBN. The circular called attention to the amendment made to the Section 1.6 of the Regulatory Framework for Bank Verification Number Operations and Watch-list in the Nigerian Banking Industry. According to the circular, eligibility for access to the BVN which was previously to be provided on the approval of the CBN was to be made available after providing a valid court order subject to the approval of the CBN.

“Consequently the CBN is by this circular hereby informs all stakeholders that the provision of a valid court order is one of the prerequisites for the release of BVN information to applicants,” the circular stated, adding that the circular takes immediate effect. Entities that may have access to BVN information on request include deposit money banks, other financial institutions, mobile money operators, payment service providers, law enforcement agencies, credit bureaus and other entities as applicable.

Meanwhile, electronic payments through the Nigeria Inter Bank Settlement System (NIBSS) was on the decline last month as the volume and value of instant payments on the platform declined. NIBSS Instant Payment (NIP) transaction volume dropped to 57.94 million in June from 58.64 million in May this year. The value of transactions through the NIP channel likewise declined from N6.62 trillion to N6.44 trillion in June.

The value of transactions consummated through Point of Sales terminals was also down to N181.82 billion in June compared to N189.48 billion recorded in May while the volume rose from 23.18 million to 23.29 million. Likewise volume and value of mobile money transfers declined in June to 605,760 and N23.61 billion from 669,672 and N25.23 billion in May respectively.

SOURCE:LEADERSHIP