The Central Bank of Nigeria (CBN) on Wednesday released its revised regulation guidelines on direct debits scheme for the banking sector.
This is part of its mandate to promote sound financial system in Nigeria, issue guidelines and facilitate the development of an efficient and effective payments system in Nigeria.
Direct debit is a cash-less form of financial settlement which facilitates recurring payments. It permits the originator of the instruction, known as’’ Biller’’, to collect amounts due from a payer through the Payer’s bank by leveraging an instruction or mandate provided by the payer. An entity wishing to participate as a Biller in the Direct Debit scheme will typically contact its bank or payment service provider.
The service may be deployed on channels provided by the Biller through its bank or Payment Service Provider.
The regulation recognizes the existing and emerging multi-channel options (Online platforms, Instant Payments.) applied for direct debit instructions in Nigeria. In addition, the provisions of the regulation are harmonized with developments in the payments system since the release of the previous version.
HOPE MOSES-ASHIKE
