New Telegraph

CBN: 2,670 bank customers on BVN watch-list

 

N2.67bn, $144,176 refunded to customers in 6 months

5 banks fail to meet minimum liquidity ratios in HI

 

A total of 2,670 bank customers were placed on the Bank Verification Number (BVN) watch list in the first half of this year, the Central Bank of Nigeria (CBN) has said. The apex bank disclosed this in its “Economic Report Half Year 2020” released yesterday. It stated: “In its effort  lf Year 2020” released yesterday.

 

 

 

Half Year 2020” released yesterday.
It stated: “In its effort  to enhance the safety, reliability and efficiency of the payments system, the CBN  continued to implement the framework for BVN operations and watch-list…

 

In the review period, the number of BVN captured increased by 14.6 per cent to 43.9 milcontinued to implement the framework for BVN operations and watch-list… In the review period, the number of BVN captured increased by 14.6 per cent to 43.9 mil  watch list, which is an ongoing exercise, is expected to be completed in the second half of the year. The essence of the review is to strengthen the efficiency of BVN operations and watch list in the payments system infrastructure.” The CBN unveiled the framework for BVN, watch list operations in 2017 as part of measures to curb the activities of fraudulent individuals in the banking system.

 

According to the framework, “A watch-listed individual shall not be allowed to enter into new relationship with any bank; a bank may choose not to continue business relationship with account holder on the watch-list. Where a bank chooses to continue an existing business relationship with holders of account on the watch list, the account holder shall be prohibited from all e-channels, such as ATM, POS, Internet Banking, Mobile Banking, including issuance of third-party cheques.

 

“A watch-listed customer shall not provide reference to another customer, neither shall he/she be allowed access to credit facility or guarantee credit facilities. A watch-listed individual shall remain in the watch list for a period as specified in the penalty table. In the event of a reoccurrence, the tenure shall begin to count from year one. Penalties that applied to watch-listed customers shall apply to all accounts that he or she is a signatory to.”

 

Also, as part of measures to ensure consumer protection, the CBN said it refunded the sums of N2.67 billion and $144,176.68 in the first six months of this year to customers who had been victims of banks’ excess charges or frauds.

 

“The bank received 2,051 complaints from consumers of financial services providers in the first half of 2020, compared with 1,528 complaints in the corresponding period of 2019. Of the total 1,167 or 56.9 per cent, were complaints on electronic/ card, while 125 or 6.1 per cent were on excess charges. “Other complaints were, mainly, on frauds, dishonoured guarantees and unauthorised deductions/ transfers, among others. A total of1,519 complaints, including those outstanding from 2019, were resolved in the review period, compared with 1,548 in the corresponding period of 2019. “Total claims in the review period in local currency and foreign currencies amounted to N4.58 billion and $151,647.82, compared with N8.70 billion and $315,475.54, respectively, in the corresponding period of 2019. Relief was brought to many of the affected customers as the sums of N2.67 billion and $144,176.68 were refunded in the first half of 2020, compared with the N7.20 billion and $315,229.02, refunded in the corresponding period of 2019.” Furthermore, the CBN report shows that transactions in e-payments witnessed significant increase in the first half of 2020, a development, the apex bank attributed to, “the opportunities presented by the COVID-19 pandemic, which promoted greater use of epayments platforms and other contactless options to settle financial transactions.” It stated: “The number of transactions using the e-payments channels increased by 340.1 per cent to 4,192.6 million from 1,232.9 million in the first half of 2019. The corresponding value of the transactions also rose significantly by 163.7 per cent to N201,699.9 billion from N76,478.4 billion in the corresponding period of 2019.” A breakdown of the volume of transactions using the e-payment channels also indicated a significant increase to 834.4 million, 278.3 million, 257.9 million and 2,444.5 million from 424.6 million, 187.7 million, 25.7 million and 47.9 million for ATMs, PoS, mobile payments and Internet (web), respectively in the first half of 2019. Similarly, “the value of transactions using the epayments options showed an increase in value to N8,610.5 billion, N2,003.2 billion, N4,455.3 billion and N169,730.9 billion in the first half of 2020 from N3,238.4 billion, N1,383.6 billion, N564.9 billion and N223.9 billion, for ATMs, PoS, mobile payments and internet (web), respectively, in the corresponding period of 2019.”

 

 

Although the CBN stated that banks generally enjoyed health in the first half of the year, as the industry’s capital adequacy and liquidity ratios were above the regulatory minimum, it noted that: “The industry liquidity ratio decreased to 65.1 per cent at the end of the first half of 2020, from 73.0 per cent at end-June 2019, reflecting the decrease in the stock of liquid assets held by banks.

 

 

“With the exception of four commercial banks and one merchant bank, others met the minimum regulatory liquidity ratios of: 30.0 per cent, 20.0 per cent and 10.0 per cent for commercial banks, merchant banks and non-interest banks, respectively in the first half of 2020.” In a related development, the CBN also yesterday released its economic report for August 2020, which shows that federally collected revenue during the period, amounted to N767.55 billion.

 

“This exceeded the collections of N747.09 billion in July by 2.7 per cent but fell below the N915.59 billion receipt in August 2019, by 16.2 per cent,” the apex bank said. It attributed the marginal increase in federation receipts in August largely to improved collection from oil revenue sources, especially Petroleum Profit Tax (PPT) and Royalties. Still, relative to the benchmark revenue of N846.84 billion, the receipt in August was 9.4 per cent short, the CBN noted.

 

 

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