CBN Suspends New Clearing Rules For Banks

The Central Bank of Nigeria (CBN) has suspended a review settlement banking arrangement to all clearing sessions for banks and merchant banks, expected to begin January 2. In a circular to all banks and the Nigeria Interbank Settlement System (NIBSS), CBN Director, Banking and Payments System Department, ‘Dipo Fatoku, said:

“Please note that the new policy on extension of settlement banking to all clearing sessions with effect from January 2, 2018 is hereby suspended until further notice.” The apexbank’s Monetary, Credit, Foreign Trade and Exchange Guideline, says it can only maintain a Settlement Account for a commercial bank that provides clearing collateral of not less than N15 billion worth of treasury bills.

The regulator said achieving the benchmark gives a bank the right to engage in clearing and settlements operations in the country. Fatokun had in an earlier circular issued last month, said it was imperative for the banks to extend the settlement banking arrangement to all the clearing sessions.

Photo Caption: CBN Director, Banking and Payments System Department, ‘Dipo Fatoku,