The Central Bank of Nigeria (CBN) has placed a limit of N20,000 on the amount customers can transfer within the first 24 hours of activating a new banking app.
The CBN rule forms part of new guidelines for mobile financial services in order to strengthen security and reduce fraud in instant payment transactions.
According to a circular released by the CBN, new accounts will be subject to transaction limits, both inflow and outflow, during the first 24 hours after a mobile financial services application is activated.
“For new accounts, transaction limits (inflow and outflow) shall be imposed on a newly activated mobile financial services app in the first 24 hours of activation,” the circular stated.
It added that financial institutions will determine the limit, but it must not exceed ₦20,000.
The CBN also said similar restrictions would apply to existing accounts that are activated on a new device. In such cases, only outflow transactions will be affected during the first 24 hours.
“For existing accounts, transaction limits (outflow) shall be imposed on a newly activated mobile financial services app in the first 24 hours of activation. The limit shall be as determined by the financial institution, subject to a maximum transaction limit of ₦20,000,” the circular added.
In addition, the apex bank directed financial institutions to introduce stronger authentication measures for mobile banking services, including device binding and multi-factor authentication (MFA).
Under the new rule, banking apps will be restricted to one device at a time.
“Mandatory device binding: Mobile financial services applications shall only be enabled on one device at a time, and customers cannot operate the apps concurrently on multiple devices,” the circular explained.
The CBN said the measures are intended to protect customers from unauthorised access and fraudulent transactions, while ensuring compliance with minimum standards for instant payments in Nigeria.
