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CBN Limits Contactless Payment Channels To ₦50,000 Daily

The Central Bank of Nigeria (CBN) has announced that the daily cumulative transaction limit is now ₦50,000 and the single transaction limit has been shifted to ₦15,000 for contactless payments made through bank accounts or digital wallets.

This was contained in a circular issued by the Apex Bank to other financial institutions, and payment service providers on Wednesday, adding that the transaction limit for contactless payments took effect on Tuesday, June 27, 2023.

The Director of the Payments and Systems Management Department, CBN, Musa Jimoh said the higher-value contactless payments are transactions that exceed the above-stated limits and will require appropriate verification and authorisation.

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“For these transactions, existing know-your-customer (KYC) requirements and limits on the electronic payment channels shall apply, adding that limits above this stipulated daily cumulative limit shall be conducted using contact-based technology,” Jimoh noted.

CBN also issued guidelines for contactless payments, stating that “banks shall determine appropriate transaction and daily cumulative limits for contactless payments from time to time”, noting that stakeholders shall be permitted to set limits in line with the bank’s limits.

Contactless payment transactions under the stipulated limits per transaction/day may not require customeauthorizationon such as a Personal Identification Number, token, biometrics, etc., but higher-value contactless payments will require customer verification such as a PIN, mobile code, biometric identifier, etc., according to the CBN.

The Apex Bank also added that “stakeholders shall implement a risk-based approach to setting volume and transaction limits.

The risks attached to a customer will be based on KYC due diligence carried out during the customer onboarding process.”

It also noted that stakeholders shall provide customers with a choice to specify limits for the value of transactions that they would perform, and such limits shall not be higher than the maximum limits specified from time to time.

“Customers who wish to perform transactions above the maximum limit should request in writing to the bank and provide indemnity that reflects the risks involved.

The bank shall approve, subject to its internal risk management policies,” CBN added.

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